Singapore-based agribusiness powerhouse Olam Group has confirmed receiving a proposal from the Saudi Agricultural and Livestock Investment Company (SALIC) to acquire the remaining stake in its agribusiness arm, Olam Agri. This follows SALIC’s 2022 acquisition of a 35.4% stake in Olam Agri for $1.24 billion, as part of a Strategic Supply & Cooperation Agreement between the two entities.
In a disclosure to the Singapore Exchange (SGX), Olam Group stated that it has received a non-binding indicative offer from SALIC. Olam is now working with its appointed advisers to evaluate the proposal. The company clarified that discussions are ongoing and no formal agreements or terms have been finalized.
“While we are reviewing and discussing the potential sale of our stake in Olam Agri, it is important to stress that there is no certainty that a transaction will materialize,” the statement read.
Olam Agri’s Strategic Role
Olam Agri is one of the two core divisions of the Olam Group, alongside Olam Food Ingredients. It manages a diverse portfolio, including the Queensland Cotton business, which operates six cotton gins and multiple warehousing facilities across Queensland and New South Wales, as well as a pulse packing and trading operation. These operations underscore the strategic importance of Olam Agri in global agriculture and food supply chains.
SALIC’s initial investment in Olam Agri in 2022 was aligned with its mission to bolster food security. At the time, Sulaiman Al Rumaih, SALIC’s Group CEO, highlighted that the investment was part of the company’s broader strategy to secure food resources for both Saudi Arabia and global markets.
Broader Implications for Nigeria
The announcement comes amid ongoing diplomatic and economic engagements between Saudi Arabia and Nigeria. Nigerian Minister of Finance Wale Edun recently praised Saudi investments, describing them as pivotal for job creation and foreign exchange inflows. This follows high-level discussions between Nigerian President Bola Tinubu and Saudi Crown Prince Mohammed bin Salman, focusing on strategic agricultural investments.
The minister’s comments may indirectly reference SALIC’s 2022 acquisition of a stake in Olam Agri, which exemplifies Saudi Arabia’s growing interest in African agribusiness.
Next Steps
For now, Olam Group has signaled that it is cautiously exploring the offer, with no guarantees of a final transaction. Should the deal proceed, it would further strengthen SALIC’s position as a major player in global agribusiness and reinforce its commitment to food security initiatives worldwide. The move could also have far-reaching implications for agribusiness partnerships in Africa, including Nigeria, as the region remains a focal point for strategic agricultural investments.
