Саудовская Salic планирует выкупить сингапурский агробизнес Olam Agri from

Saudi Arabia's Salic to Buy Singaporean Agribusiness Olam Agri

Overview

Saudi Agricultural and Livestock Investment Co. (Salic), a Saudi Arabian state-owned company, has announced its intention to acquire Olam Agri, the agribusiness arm of Singapore-based Olam International. The deal is valued at approximately $1.24 billion and is expected to close in the fourth quarter of 2023.

Strategic Rationale

The acquisition of Olam Agri aligns with Salic's strategy to expand its agricultural footprint and secure food security for Saudi Arabia. Olam Agri has a global presence with operations in over 60 countries and a diverse portfolio of agricultural commodities, including grains, oilseeds, and sugar. The deal will provide Salic with access to Olam Agri's extensive supply chain and distribution networks, as well as its expertise in sustainable agriculture practices. By leveraging these assets, Salic aims to increase the efficiency and productivity of its agricultural operations.

Details of the Transaction

Salic will acquire all of the outstanding shares of Olam Agri from Olam International through a scheme of arrangement. The transaction has been approved by the boards of directors of both companies and is subject to regulatory approvals and shareholder approval. The acquisition is expected to be completed in the fourth quarter of 2023. Upon completion, Olam Agri will become a wholly-owned subsidiary of Salic.

Impact on the Agricultural Sector

The acquisition of Olam Agri by Salic is expected to have a significant impact on the global agricultural sector. The combined entity will be one of the largest agricultural companies in the world, with a diversified portfolio of commodities and a presence in key markets. The deal is also seen as a positive development for food security in Saudi Arabia. By securing access to Olam Agri's supply chain and distribution networks, Salic will be better positioned to meet the growing demand for food in the Kingdom.

Conclusion

The acquisition of Olam Agri by Salic is a strategic move that aligns with the company's growth ambitions and food security goals. The deal will create a global agricultural powerhouse with a diversified portfolio and a strong presence in key markets. The transaction is expected to have a positive impact on the global agricultural sector and on food security in Saudi Arabia.