SALIC to expand global commodity footprint; Olam Agri set to become fully owned subsidiary

The Competition Commission of India (CCI) has approved Saudi Arabia’s sovereign wealth fund, Public Investment Fund (PIF), via its investment arm SALIC, to acquire a majority stake in Olam Agri Holdings Ltd., signaling a major consolidation in the global agri-commodities sector.

Under the approved transaction, SALIC will indirectly acquire between 44.58 per cent and 64.57 per cent of Olam Agri’s issued share capital. Following the completion of the stake sale, Olam Agri will become a 100 per cent owned subsidiary of SALIC, which already holds a 35.43 per cent stake in the company acquired in December 2022. Earlier this year, SALIC entered into an agreement to raise its holding to 80.01 per cent for $ 1.78 billion, with a call option to acquire the remaining 19.99 per cent within three years.

“This acquisition aligns with SALIC’s strategic objectives of diversifying sources of essential commodities, strengthening supply chain integration, and enhancing logistical efficiency across its local and international investments,” said Sulaiman AlRumaih, Group CEO of SALIC. He added that the deal positions SALIC to secure a key role in the global grains sector and enhance value creation across its subsidiaries.

Olam Agri, headquartered in Singapore, operates as a merchant and processor of agricultural goods, with wholesale operations for multiple agri-commodities in India and retail presence limited to basmati rice. In 2023, the company reported revenues of SGD 31.3 billion, earnings before interest and tax of SGD 967.7 million, and traded volumes exceeding 39 million metric tonnes globally.

SALIC, through its focus on farming, procurement, and commodity imports into Saudi Arabia, also maintains a 9.22 per cent stake in LT Foods Ltd., the Indian FMCG company behind the Daawat brand of basmati rice. The Olam Agri acquisition is expected to strengthen SALIC’s global commodity supply chains, reinforce strategic sourcing, and integrate logistics for greater efficiency.

The CCI’s approval underscores the regulator’s oversight of high-value mergers and acquisitions to ensure competitive fairness, clearing the way for SALIC’s ambitious global expansion in the agri-commodities space.