Olam to Sell Stake in Agribusiness for $1.8 Billion
Olam Group has agreed to sell a 44.58% stake in its agricultural products business Olam Agri to state-owned Saudi Agricultural and Livestock Investment Company (SALIC) for $1.78 billion, valuing the business at $4 billion. The transaction, which includes a 35.43% stake sold previously, will result in a gain of $1.84 billion for Olam Group and give SALIC an 80% controlling stake in the business. The sale of the remaining 19.99% stake is expected to be completed three years after the completion of the first phase.
- This massive investment by Saudi Arabia underscores the importance of agricultural commodities in securing key positions in global markets, as countries seek diversification and resilience in their economies.
- What implications will this acquisition have for the global supply chain, particularly in light of rising food security concerns and increasing demand for sustainable agriculture practices?