SALIC raises Olam Agri stake to 80% in US$1.88B deal

SAUDI ARABIA – Saudi Agricultural and Livestock Investment Co., a Public Investment Fund (PIF) subsidiary, has increased its stake in Olam Agri, a prominent global agribusiness specialising in food, to 80.01% in a SR7 billion ($1.88 billion) transaction, reinforcing its role in global food and feed supply chains.

The deal expands SALIC’s international footprint to 12 strategic assets and strengthens access to key agricultural commodities, including grains and oilseeds critical for animal feed production. 

Olam Agri operates across more than 30 countries, offering integrated origination, processing and logistics capabilities.

“SALIC’s investment strategy is centered on diversifying supply networks and securing direct access to global food sources, enabling us to build a more resilient food ecosystem capable of adapting to global shifts,” said Sulaiman bin Abdulrahman Al-Rumaih.

Feed security at the centre of global expansion

The acquisition highlights the growing importance of vertically integrated supply chains in securing feed inputs, particularly for import-dependent regions such as the Middle East.

With feed accounting for 60-70% of livestock production costs, stable access to grains, oilseeds, and protein meals has become a strategic priority. 

Olam Agri’s portfolio, spanning origination, storage, processing and distribution, positions SALIC to better manage price volatility and supply disruptions.

The move comes amid continued pressure on global feed markets. 

Volatility in grain prices, driven by climate shocks and geopolitical tensions, has increased the need for direct sourcing and supply chain control. 

By expanding its stake, SALIC strengthens its ability to secure inputs such as corn, soy and wheat, which are essential for livestock and poultry production.

The transaction also aligns with the PIF’s broader strategy to invest in strategic sectors globally.

Since its restructuring in 2015, PIF’s assets under management have grown from about SR500 billion (US$133.32 million) to more than SR3.47 trillion (US$925.21 billion) by 2025.

“We have been developing an integrated platform with a global reach that strengthens food security and supply resilience,” Al-Rumaih said. 

“This transaction marks a historic milestone in SALIC’s journey, enhancing our role across global food supply chains.”

Between 2021 and 2025, PIF contributed around one-third of Saudi Arabia’s non-oil GDP growth, with its share of the economy rising to 10%, equivalent to SR910 billion (US$242.6 billion).

The agreement also includes options for SALIC to acquire the remaining 19.99% stake in Olam Agri within three years, potentially giving it full ownership.

For feed markets, the deal signals a continued shift toward state-backed vertical integration, where control over raw materials, processing and logistics is becoming critical to ensuring long-term supply stability and cost efficiency.

Sign up HERE to receive our email newsletters with the latest news updates and insights from Africa and the World, and follow us on our WhatsApp channel for updates.