Olam Group has successfully obtained regulatory approvals in most jurisdictions for its planned sale of a 44.58% stake in Olam Agri Holdings to the Saudi Agricultural and Livestock Investment Company (SALIC), pushing the deal closer to finalization.

The company revealed that approvals have been secured in all but two jurisdictions, though the deal still depends on meeting certain conditions, including final regulatory clearances. Olam Agri Nigeria Limited, a key subsidiary within Olam Group, plays an important role in the company’s global agribusiness operations.

This update comes nearly a year after Olam Group and Olam Agri entered into the $1.8 billion agreement with SALIC in February 2025. In a filing, Olam stated that the transaction would be completed “as soon as practicable upon the satisfaction of all the conditions,” with Sunny Verghese, the Group’s Co-founder and CEO, urging investors to “exercise caution” as the deal is still subject to final approvals.

Details of the Sale

Under the agreement, Olam will divest its remaining shares in Olam Agri in two phases. The first phase involves the sale of 44.58% of Olam Agri, representing approximately 1.5 billion ordinary shares, to SALIC for $1.8 billion. This transaction values Olam Agri at about $4 billion.

Once the first phase is completed, SALIC’s ownership in Olam Agri will rise to 80.01% from its current 35.43%. The second tranche, which involves the remaining 19.99% stake, will be sold within three years of completing the first phase through a call and put option arrangement.

Regulatory Approvals and Strategic Importance

Regulatory approvals have been progressing well, with the Competition Commission of India clearing SALIC’s acquisition of 44.58% of Olam Agri, as well as up to 64.57% of the company’s issued share capital. Similarly, the European Commission has authorized SALIC’s purchase of 80.01% of Olam Agri under the EU Merger Regulation, further boosting the regulatory momentum around the deal.

For SALIC, which is wholly owned by the Public Investment Fund of Saudi Arabia, the transaction is a key part of its strategy to enhance its role in global commodity supply chains and support the nation’s food security initiatives. SALIC has investments across farming, procurement, and trading of food commodities, with operations in India via LT Foods Limited.

Olam’s Other Key Developments

In addition to the sale of its stake in Olam Agri, Olam has also reported a 574% increase in profit from continuing operations, reaching S$323.8 million. The company declared an interim dividend of S$0.02 per share, down from the previous year’s S$0.03 per share.

Looking forward, Olam is also focusing on the initial public offering (IPO) of its other food ingredients business, Olam Food Ingredients (ofi), which was created in early 2020 and contributed nearly 40% of Olam’s total revenue in the 2024 financial year.