New Delhi, Jul 23 (PTI) SALIC, an investment arm of Saudi Arabia's PIF, has sought clearance from the Competition Commission of India (CCI) to acquire an additional 64.57 per cent stake in Olam Agri.

Public Investment Fund (PIF) has assets under management (AUM) of more than USD 925 billion.

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"The proposed transaction relates to SALIC's proposed indirect acquisition of 44.58 per cent and up to 64.57 per cent of the issued share capital of Olam Agri from Olam Agri Pte Ltd and Olam Holdings Pte Ltd," according to a notice filed with CCI on Tuesday.

In a notice, SALIC said the proposed transaction is being filed pursuant to a share purchase agreement on February 24, 2025.

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In December 2022, SALIC acquired a 35.43 per cent stake in Olam Agri.

Saudi Agricultural and Livestock Investment Company (SALIC) agri-business is focused on farming and procurement as well as importing commodities into the Kingdom of Saudi Arabia.

It is present in India through LT Foods Ltd, wherein the investment arm owned a 9.22 per cent stake in FMCG firm, which owns 'Daawat' brand of basmati rice.

Singapore-based Olam Agri mainly operates as a merchant and processor of agricultural goods. In India, Olam Agri undertakes the sales of various agri-commodities at the wholesale level, but retails only basmati rice.

SALIC and Olam Agri Holdings Ltd have said the proposed transaction is not likely to cause any appreciable adverse effect on competition in India.

Post completion of the sale, Olam Agri will be a 100 per cent owned subsidiary of SALIC.

In February this year, SALIC has entered into an agreement to increase its ownership stake in Olam Agri from 35.4 per cent to 80.01 per cent for USD 1.78 billion.

The transaction also provides SALIC with a call option to acquire the remaining 19.99 per cent within three years. This investment will strengthen SALIC's ability to enhance global commodity supply chains and add value to its subsidiary companies.

"The full acquisition agreement of Olam Agri aligns with SALIC's strategic objectives of diversifying sources of essential commodities, strengthening supply chain integration, and enhancing logistical efficiency across its local and international investments.

"Furthermore, this acquisition underscores SALIC's ambition to secure a key position in the global grains sector," Sulaiman AlRumaih, Group Chief Executive Officer of SALIC, said.

In 2023, Olam Agri generated volumes in excess of 39 million metric tonnes, revenues of SGD 31.3 billion and earnings before interest and tax of SGD 967.7 million.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)