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

Saudi Agricultural & Livestock Investment Co., controlled by the country’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’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’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’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.

©2024 Bloomberg L.P.