Olam Sells Agri-Business Stake to Saudi in Long-Awaited Deal
- Agreement values the business at $4 billion, Olam says
- The group’s shares close up more than 5% in Singapore
Saudi Agricultural & Livestock Investment Co. was reported in November to be in advanced talks on a transaction that would value Olam Agri Holdings at about $4 billion.
Photographer: Tasneem Alsultan/BloombergSingapore’s Olam Group Ltd. reached a long-awaited deal to sell a controlling stake in its agri-business unit, which trades bulk grains and makes everything from edible oils to pasta, to Saudi Arabia’s state-owned food trading firm.
The $1.78 billion deal will almost double the stake that Saudi Agricultural & Livestock Investment Co., or Salic, has in Olam Agri Holdings to 80%, and see Olam become a more slimmed down company focused on cocoa and coffee, where it’s one of the world’s top traders. It’s also the latest example of the kingdom’s strategy of ensuring food security through acquisitions in the global supply chain.