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Saudi Arabia’s SALIC to Buy Control of Olam Agri for $1.8 Billion

The SALIC headquarters.
The SALIC headquarters.
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Saudi Arabia’s SALIC to Buy Control of Olam Agri for $1.8 Billion

The SALIC headquarters.
The SALIC headquarters.

SALIC, a subsidiary of the Saudi Public Investment Fund (PIF), announced on Monday that it signed an agreement to increase its stake in Singapore’s Olam Agri Holdings (Olam Agri) from 35.43% to 80.01%, for a total value of $1.78 billion.

The transaction is subject to regulatory approval, the company said in a statement.

The agreement includes an option for SALIC to acquire the remaining 19.99% stake within three years from the completion date of the latest stake buyout, giving it the opportunity for full acquisition.

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, reported the Saudi Press Agency (SPA).

Furthermore, this acquisition underscores SALIC's ambition to secure a key position in the global grains sector.

According to Bloomberg, the deal values Olam Agri at $4 billion, 23% higher than the current market capitalization of the group, the Singaporean company said.

On completion of the 44.6% stake sale, likely in the fourth quarter of this year, Olam Group will realize an estimated gain on disposal of $1.84 billion, it said.

In early 2022, Olam Group agreed to sell around a third to SALIC, in a transaction that priced it at around $3.5 billion.

“The full acquisition agreement of Olam Agri aligns with SALIC's strategic objectives of diversifying sources of essential commodities ... to secure a key position in the global grains sector,” SALIC Group CEO Sulaiman Al-Rumaih said in a statement.

He added: “Olam Agri, a global player in trading essential commodities, aligns with SALIC's strategic investment approach, which prioritizes high-potential companies addressing future food security needs through innovation and integrated supply chains both locally and globally.”

“We are confident that this partnership will contribute to achieving national and global objectives while continually enhancing production efficiency for the benefit of all stakeholders,” Al-Rumaih said.

OGL’s Co-Founder and Group CEO Sunny Verghese said: “Since SALIC’s investment in Olam Agri in 2022, our partnership with SALIC has unveiled new avenues of growth.”

He said with its strategic mandate as a global agrifoods investor and related complementary strengths, SALIC and Olam Agri share the same vision and focus on sustainable sourcing and commitment to meet the rising demand for food, feed and fiber.

“Importantly, this transaction is transformative for Olam Agri,” Verghese added.

SALIC has a track record of investing across the global agri-food supply chain to improve access to essential foods, with current investments spanning five continents, seven countries, and 16 food commodities.

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Business

SABIC Reshapes Global Footprint With $950m Divestment Deals

A SABIC employee (company website) 
A SABIC employee (company website) 
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SABIC Reshapes Global Footprint With $950m Divestment Deals

A SABIC employee (company website) 
A SABIC employee (company website) 

Saudi Basic Industries Corporation (SABIC) has announced a major overhaul of its global portfolio, accelerating its exit from petrochemical and engineering plastics assets in Europe and the Americas through two divestment deals worth a combined $950 million.

The move marks a fundamental shift in the company’s operating model and investment identity. It comes as part of an intensive portfolio-optimization program launched in 2022, aimed at boosting returns on capital, freeing up cash, and refocusing investments on higher-growth markets and more sustainable profit margins.

Following the announcement, SABIC shares came under heavy selling pressure on Thursday, falling to 48.78 riyals — their lowest level since April 2009. The decline reflected investor reaction to deal details that include non-cash losses of about $4.88 billion (18.3 billion riyals), stemming from the fair-value revaluation of divested assets. These charges are expected to weigh on the company’s fourth-quarter 2025 results.

While the market response was cautious, analysts say the accounting hit represents a necessary short-term sacrifice to build a leaner, more competitive company aligned with the new centers of global economic growth in East Asia. The divestments also fit within SABIC’s longer-term strategic shift that began in 2020, when Saudi Aramco acquired a 70% stake in the company from the Public Investment Fund for $69.1 billion in the largest deal in the history of the Saudi stock market.

Focus on Higher-Margin Markets

According to SABIC, the first transaction involves the sale of its European petrochemicals business to investment firm AEQUITA for an enterprise value of $500 million. The second covers the sale of its thermoplastics engineering plastics business in Europe and the Americas to Mutares SE & Co. KGaA for $450 million, with potential additional payments linked to future free cash flow over the next four years or a subsequent resale of the business.

SABIC said the transactions represent a key step in reshaping its portfolio, sharpening its focus on higher-margin markets and products with strong competitive advantages, while redeploying capital into opportunities that deliver stronger returns and improved free cash flow. The company stressed that the divestments will not detract from its commitment to technology and innovation or its ability to serve customers worldwide.

Short-Term Pain, Long-Term Gain

SABIC chairman Khalid Al-Dabbagh described the deals as a “transformational step” in the company’s strategy to maximize shareholder value by strengthening cash generation.

Chief executive Abdulrahman Al-Fageeh said the transactions extend the portfolio-optimization program launched in 2022, which included earlier exits from functional forms and the Hadeed and Alba businesses. He said the strategy allows SABIC to reshape its portfolio more effectively and concentrate on areas where it has clear and sustainable competitive advantages in a rapidly changing global environment.

For his part, Chief financial officer Salah Al-Hareky added that the divestments reflect SABIC’s disciplined approach to capital management. Freeing up capital for redeployment into higher-return opportunities, he said, will improve capital efficiency and enhance returns over the medium to long term.

Assets Involved

The European petrochemicals business being sold includes the production and marketing of ethylene, propylene, polyethylene, polypropylene and value-added polymer compounds, with manufacturing sites in the UK, the Netherlands, Germany and Belgium.

The engineering thermoplastics deal covers SABIC assets producing materials such as polycarbonate, polybutylene terephthalate and ABS resins, with manufacturing facilities in the United States, Mexico, Brazil, Spain and the Netherlands. Mutares co-founder and chief executive Robin Laik said the priority after completion will be ensuring business continuity and supporting employees during the transition, while unlocking the full potential of the assets as a standalone platform.

Completion of both transactions remains subject to customary conditions and regulatory approvals, including employee consultations where required. SABIC expects the deals to close in the second half of 2026.

Analysts see the exits from lower-return assets as a catalyst for improved margins and stronger free cash flow, positioning SABIC for a more resilient and profitable phase beyond the near-term pressures on its share price.

 

 

 

Business

TotalEnergies Gets New Exploration Permit Offshore Lebanon

A sign with the logo of French oil and gas company TotalEnergies is pictured at a petrol station in Bouguenais near Nantes, France, Nov. 14, 2022. (Reuters)
A sign with the logo of French oil and gas company TotalEnergies is pictured at a petrol station in Bouguenais near Nantes, France, Nov. 14, 2022. (Reuters)
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TotalEnergies Gets New Exploration Permit Offshore Lebanon

A sign with the logo of French oil and gas company TotalEnergies is pictured at a petrol station in Bouguenais near Nantes, France, Nov. 14, 2022. (Reuters)
A sign with the logo of French oil and gas company TotalEnergies is pictured at a petrol station in Bouguenais near Nantes, France, Nov. 14, 2022. (Reuters)

French oil major TotalEnergies has obtained government permission for a new exploration permit offshore Lebanon, it said on Friday.

Total, ‌which owns ‌a 35% ‌operating ⁠stake ​in ‌the permit, will begin 3D seismic surveys on Block 8 with partners Eni (35%) and QatarEnergy (30%).

The French company moved to hunt for natural ⁠gas in Lebanon in late 2022, ‌following the government's ‍landmark agreement ‍of a maritime border with ‍Israel in the Mediterranean Sea - though an initial exploration campaign on an adjacent block was disappointing.

"Although ​the drilling of the well Qana 31/1 on ⁠Block 9 did not give positive results, we remained committed to pursue our exploration activities in Lebanon," TotalEnergies CEO Patrick Pouyanne said in a statement.

Business

World Food Prices Dip in December but Still up in 2025, UN’s FAO Says

A shopkeeper arranges food oil bottles at his grocery store in northern Tehran, Iran, Tuesday, Jan. 6, 2026. (AP)
A shopkeeper arranges food oil bottles at his grocery store in northern Tehran, Iran, Tuesday, Jan. 6, 2026. (AP)
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World Food Prices Dip in December but Still up in 2025, UN’s FAO Says

A shopkeeper arranges food oil bottles at his grocery store in northern Tehran, Iran, Tuesday, Jan. 6, 2026. (AP)
A shopkeeper arranges food oil bottles at his grocery store in northern Tehran, Iran, Tuesday, Jan. 6, 2026. (AP)

World food prices declined for a fourth consecutive month in December, mostly pressured by dairy, ​meat and vegetable oil prices, marking the lowest average since January 2025, the United Nations' Food and Agriculture Organization said on Friday.

The FAO Food Price Index, which tracks a basket of globally traded food commodities, averaged 124.3 points in December, down from 125.1 in November and 2.3% lower than a year earlier.

For the full 2025 year, the index ‌averaged 127.2 ‌points, up 4.3% from 2024, as higher ‌world ⁠prices ​for ‌vegetable oils and dairy products outweighed declines in cereal and sugar quotations.

The dairy index declined by 4.4% in December, driven by a steep drop in butter prices following increased cream availability in Europe. However, for 2025 as a whole, dairy prices averaged 13.2% above 2024, reflecting strong import demand and limited exportable supplies earlier in ⁠the year.

Meat prices dipped 1.3% last month, led by falls in bovine and ‌poultry categories, but the full-year index ‍remained 5.1% above the previous ‍year's value, supported by strong global demand and uncertainty linked ‍to animal diseases and geopolitical tensions, the FAO said.

Vegetable oil prices eased 0.2% in December to a six-month low, as weaker soy, rapeseed and sunflower oil quotations offset gains in palm oil. For the ​whole of 2025, the vegetable oil index averaged 17.1% higher than in 2024, reaching a three-year high amid ⁠tight global supplies.

The FAO Cereal Price Index rose 1.7% in December with wheat supported by renewed concerns over Black Sea export flows, and maize buoyed by strong ethanol production in both Brazil and the United States.

For the whole of 2025, the cereal index averaged 4.9% below its 2024 level, its third consecutive annual decline and the lowest annual average since 2020.

Sugar prices rose 2.4% in December after three consecutive monthly declines, mainly due to lower production in Brazil's southern regions.

The sugar index reached ‌a five-year low for 2025, down 17% from 2024, as global supplies remained plentiful.