SAUDI Agricultural and Livestock Investment Company has signed an agreement to increase its stake in Olam Agri Holdings to 80 percent, with an option to acquire the balance within three years.

Cecil Plains is one of six Australian gins owned by Olam Agri via Queensland Cotton.

In a statement released today, SALIC said this would lift its stake in Olam Agri, the parent of Australia’s Queensland Cotton, from the current 35.4pc.

“Since SALIC’s initial investment in Olam Agri in 2022, our partnership has unlocked new avenues for growth,” Olam Agri chief executive officer Sunny Verghese said.

“With its strategic mandate as a global agrifoods investor and complementary strengths, SALIC and Olam Agri share a common vision focused on sustainable sourcing and meeting the growing demand for food feed, and fibre.”

In November, Olam confirmed it had received an offer from SALIC to buy the balance of the Singapore-based agribusiness.

Both Olam Group and SALIC have stated the sale price of the 44.6pc share in Olam Agri as being US$1.78 billion.

Alongside Olam Food Ingredients, Olam Agri is one of two main divisions within the Olam Group.

In Australia, the Queensland Cotton business includes six gins, and several warehousing facilities located across Qld and New South Wales, plus a pulse packing and trading operation.

Following the recent sale of the 37,553ha Bodallin Aggregation and the 40,401ha Warralakin Aggregation in Western Australia, SALIC’s major investment in Australian agriculture is in meat processing.

This is via Minerva Foods Australia, SALIC’s joint venture with Brazil’s Minerva SA, which owns Australian Lamb Company and its processing plants at Colac in Victoria, as well as a boning room and sales and marketing hub at Sunshine West in Melbourne.

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