BloombergOct 31 23:25

(Bloomberg) -- A state-owned Saudi investment firm is closing in on a deal to acquire  Olam Group  Ltd.&rsquo s remaining stake in its agribusiness unit, according to people familiar with the matter.

Saudi Agricultural & Livestock Investment Co., controlled by the country&rsquo s sovereign wealth fund, is in advanced talks on a transaction that would value Olam Agri Holdings at about $4 billion, the people said. 

The Saudi firm already owns just over a third of of Olam Agri, which it bought for $1.24 billion in 2022. Salic is a unit of the Public Investment Fund and aims to achieve food security for the kingdom, investing domestically and overseas.

Olam had earlier been working on a potential listing of the agribusiness unit in Singapore and Riyadh last year, though the share sale preparations later stalled, according to the people. 

Deliberations are ongoing and there&rsquo s no certainty the talks with Salic will lead to an agreement, the people said, asking not to be identified because the information is private. A representative for Salic declined to comment, while a spokesperson for Olam didn&rsquo t immediately respond to a request for comment during a public holiday in Singapore. 

Olam Agri, which sells grains and seeds and makes everything from edible oils to pasta, is one of Olam Group&rsquo s main units. It was created in a reorganization in early 2020. The Gulf region is a growing market for the commodities it supplies and Saudi Arabia is putting a strong emphasis on food security.

--With assistance from Alfred Cang, Fahad Abuljadayel and Clarice Couto.

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