Decision of Competition Commission of South Africa on SALIC/Olam acquisition

Decision of Competition Commission of South Africa on SALIC/Olam acquisition
Photo: https://www.compcom.co.za/wp-content/uploads/2022/08/Statement-on-the-latest-decisions-by-the-Competition-Commission-19-August-2022-.pdf 22.08.2022 150

The Commission has recommended that the Competition Tribunal approve the proposed transaction whereby SIIC intends to acquire additional shareholding in Olam Agri, without conditions. 

The primary acquiring firm is SIIC, a company incorporated under the laws of the Kingdom of Saudi Arabia. SIIC is controlled by the Saudi Agricultural and Livestock Investment Company (SALIC). SALIC is a wholly owned subsidiary of the Public Investment Fund of Saudi Arabia (“PIF”), the sovereign wealth fund of Saudi Arabia. All firms directly and indirectly controlled by PIF are collectively referred to as Acquiring Group. 

SALIC is an investment company with holdings in various international companies specialized in the fields of agriculture and the trading of food commodities. SALIC’s agri-business is focused on farming and origination as well as importing commodities into Saudi Arabia. 

The primary target firm is Olam, a company incorporated under the laws of Singapore. Olam Agri is entirely controlled by the Olam Group Limited (“Olam Group”). Olam Agri controls a single firm in South Africa, Olam South Africa Proprietary Limited. 

Olam Agri is a merchant and processor of agricultural goods, with activities spanning the entire value chain: production, origination, processing, storing, transporting, and merchandising. Olam Agri operates various platforms, including oilseeds, grains, cotton, rice and edible oils.

The Commission found that the proposed transaction is unlikely to result in a substantial prevention or lessening of competition in any relevant markets. The Commission further found that the proposed transaction does not raise any substantial public interest concerns.  

Source: Competition Commission South Africa

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