Olam Group Limited has finalized the transfer of a $1.24 billion stake in its agricultural division to Saudi Arabia’s SALIC International Investment Company. The transaction, completed on December 23, 2024, represents 35.43% of Olam Agri’s stake, valuing the entire agricultural wing at approximately $3.5 billion. Despite the sale, Olam Group retains a majority stake of 64.57% in the division.
Operating in 60 countries, including Nigeria, Olam Group is a global agro-business powerhouse, supplying food and industrial raw materials to over 22,000 customers. It is recognized as one of the world’s leading suppliers of cocoa beans, coffee, cotton, and rice.
Strategic Partnership and Vision
As part of the agreement, Olam Agri and SALIC have established a Strategic Supply & Cooperation Agreement. This collaboration is designed to strengthen Olam’s foothold in the Middle Eastern markets and align with Saudi Arabia’s Vision 2030, an economic transformation plan aimed at diversification and sustainability.
Sunny Verghese, Co-Founder and CEO of Olam Group, described the deal as a testament to the resilience of Olam Agri’s business model amid global macroeconomic uncertainties. “This deal reflects Olam Agri’s food security expertise, which is emerging as an important secular trend for our industry,” Verghese said.
Group CEO of SALIC, Sulaiman AlRumaih, highlighted the significance of the partnership in advancing Saudi Arabia’s Vision 2030. “This strategic partnership with Olam, whose global leadership is in grains and diversified products, will be a key contributor towards achieving our Vision,” he noted.
The partnership underscores Olam Group’s reorganization strategy, which focuses on optimizing key operations and expanding into new markets. For SALIC, the deal is a critical step in diversifying international investments and securing sustainable sources for essential commodities amid rising global food demand.
This historic collaboration is expected to create significant synergies that will drive Olam Agri’s growth, enhance food security globally, and strengthen its presence in the Middle East.
Stay tuned to 9am News Nigeria for more Breaking News, Business News, Sports updates And Entertainment Gists.
