01.11.2024, 14:21
Saudi Salic will receive agricultural assets in Russia through the purchase of Singapore's Olam Agri
Source: OREANDA-NEWS
OREANDA-NEWS The Saudi company Salic, a subsidiary of Saudi Agricultural & Livestock Investment Co., will acquire a significant stake in Olam Agri, a Singapore-based agricultural company. This was announced by the Union of Grain Exporters and Producers, following reports in foreign media that Olam Group has received an offer from Salic to purchase its agricultural division.
The acquisition is primarily focused on the Azov Grain Terminal, which is a member of the union.
Salic already holds a 35.4% stake in Olam Agri, having acquired it in 2022 for a sum of $1.24 billion.
This is a significant agreement, without a doubt, which paves the way for Saudi Arabia to enter the Russian agricultural market. By acquiring Olam Agri, the Saudis gain ownership of the Azov grain terminal at low water levels, and potentially the Rusmolco company, one of Russia's largest milk producers. Rusmolco operates three dairy complexes and a herd reproduction complex in the Penza region, with a livestock of over 33,000 animals. The company also manages 152,000 hectares of agricultural land. Rusmolco has established a closed cycle, encompassing the production, storage, and processing of grain, according to Eduard Zernin, the Chairman of the Union.
Zernin informed Interfax that Salic has been actively seeking investment opportunities in the Russian agricultural sector for several years. «Now, with the acquisition of Olam Agri, we can say that the Saudis are entering our market. The significance of this event for Russian agriculture is immeasurable, especially in light of recent geopolitical uncertainties,» he emphasized.
Meanwhile, Rusmolco informed Interfax that the company is not a part of Olam Agri and is not included in the scope of the transaction. Rusmolco is a subsidiary of Olam Global Holdings. The deal pertains solely to the business of the Azov grain terminal, the company stated.
The acquisition of the remaining assets of Olam Agri is estimated to be worth $4 billion. This will enable Salic to gain full control over Olam Agri's product portfolio, which encompasses grains, edible oils, and other food products.
The capabilities of the Azov Grain Terminal (AZT) are capable of handling up to 1.4 million tons of grain annually.
According to its financial statements, the terminal generated revenue of 13.457 billion rubles in 2023, compared to 13.435 billion rubles in 2022. The net profit for the year was 142.99 million rubles, compared to 361.5 million rubles in the previous year.
The acquisition is primarily focused on the Azov Grain Terminal, which is a member of the union.
Salic already holds a 35.4% stake in Olam Agri, having acquired it in 2022 for a sum of $1.24 billion.
This is a significant agreement, without a doubt, which paves the way for Saudi Arabia to enter the Russian agricultural market. By acquiring Olam Agri, the Saudis gain ownership of the Azov grain terminal at low water levels, and potentially the Rusmolco company, one of Russia's largest milk producers. Rusmolco operates three dairy complexes and a herd reproduction complex in the Penza region, with a livestock of over 33,000 animals. The company also manages 152,000 hectares of agricultural land. Rusmolco has established a closed cycle, encompassing the production, storage, and processing of grain, according to Eduard Zernin, the Chairman of the Union.
Zernin informed Interfax that Salic has been actively seeking investment opportunities in the Russian agricultural sector for several years. «Now, with the acquisition of Olam Agri, we can say that the Saudis are entering our market. The significance of this event for Russian agriculture is immeasurable, especially in light of recent geopolitical uncertainties,» he emphasized.
Meanwhile, Rusmolco informed Interfax that the company is not a part of Olam Agri and is not included in the scope of the transaction. Rusmolco is a subsidiary of Olam Global Holdings. The deal pertains solely to the business of the Azov grain terminal, the company stated.
The acquisition of the remaining assets of Olam Agri is estimated to be worth $4 billion. This will enable Salic to gain full control over Olam Agri's product portfolio, which encompasses grains, edible oils, and other food products.
The capabilities of the Azov Grain Terminal (AZT) are capable of handling up to 1.4 million tons of grain annually.
According to its financial statements, the terminal generated revenue of 13.457 billion rubles in 2023, compared to 13.435 billion rubles in 2022. The net profit for the year was 142.99 million rubles, compared to 361.5 million rubles in the previous year.
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