The Saudi Agriculture & Livestock Investment Company (SALIC) has announced plans to acquire a controlling 44.58% stake in Olam Agri Holdings (Olam Agri) for approximately $1.78 billion. This acquisition, which forms part of a broader transaction, will raise SALIC’s total ownership of Olam Agri to 80.01% upon completion of the first tranche.

The deal marks a significant expansion of SALIC’s investments in global agribusiness, reinforcing its strategic commitment to securing reliable food sources amid shifting global agricultural supply chains. For Olam Group Limited (OGL), the parent company of Olam Agri, this transaction represents a major step in its long-term divestment strategy, generating substantial financial returns while repositioning the group’s focus on its remaining businesses.

The Breakdown of The Deal

Under the agreement, SALIC’s purchase will unfold in phases. Following the completion of Tranche 1, OGL will retain a 19.99% stake in Olam Agri. However, OGL has negotiated a put option that allows it to sell its remaining shares to SALIC on the third anniversary of Tranche 1’s completion. This means that OGL will have the flexibility to fully exit Olam Agri in 2027 if it chooses to do so.

The financial windfall for Olam Group from this sale is substantial. Upon the completion of Tranche 1, the company is expected to realize an estimated disposal gain of $1.84 billion, which will be added to OGL’s equity reserves. Furthermore, the combined proceeds from Tranche 1 and the anticipated second tranche (Tranche 2) will generate approximately $2.58 billion in gross cash inflows.

OGL’s Board has outlined that it will carefully assess several strategic considerations before deploying these funds. The company is weighing potential allocations toward debt repayment, capital restructuring, reinvestment in core business areas, and the possibility of a one-time special dividend to shareholders.

The sale aligns with Olam’s broader restructuring efforts. Once Tranche 2 is completed, Olam will have fully divested from Olam Agri, including the previous 35.43% stake sale in 2022. This total divestment is expected to generate gross proceeds of $3.87 billion, significantly boosting Olam Group’s financial reserves by $2.72 billion.

After parting ways with Olam Agri, OGL will continue to retain full ownership of Olam Food Ingredients (ofi) and the Remaining Olam Group. The company is actively exploring strategic options to unlock value from these businesses, including a potential IPO for ofi, which could further enhance shareholder returns and reposition the company within the global food sector.

SALIC’s Investment Strategy

For SALIC, this acquisition is not just about expanding its portfolio—it is a strategic move aimed at reinforcing food security through investments in high-potential agricultural businesses. The company has long pursued a strategy focused on securing stable food supplies through partnerships, acquisitions, and vertically integrated supply chains.

SALIC gains greater control over a key global agribusiness player by increasing its stake in Olam Agri to 80.01%, enhancing its ability to influence food production and distribution on a global scale. Olam Agri’s operations, which span critical agricultural commodities such as grains, edible oils, and animal feed, are expected to play a vital role in supporting Saudi Arabia’s food security objectives as the country works to reduce its dependence on food imports and secure reliable supply sources.

In a statement on the deal, SALIC reaffirmed its confidence in the partnership, stating that “the strengthened relationship with Olam Agri will further its mission of investing in innovative food and agriculture businesses that contribute to global and national food security.”

The transaction also reflects broader global trends, where sovereign-backed investment funds are increasingly prioritizing food security as a strategic imperative. As climate change, geopolitical tensions, and supply chain disruptions continue to pose risks to global food production, countries are doubling down on securing essential agricultural assets—and SALIC’s deepened partnership with Olam Agri is a clear example of this approach.

What’s In It for Olam Group?

For Olam Group, this deal is a continuation of its broader corporate restructuring strategy, which has seen the company streamline its business model by focusing on its highest-value assets. While Olam Agri has been a cornerstone of the group’s operations, the divestment allows Olam to redirect capital and management resources toward its remaining businesses.

Olam’s full ownership of ofi, which specializes in food ingredients such as cocoa, coffee, dairy, nuts, and spices, positions the company to explore new growth avenues in premium food markets. The potential IPO for ofi, if pursued, could provide Olam with an additional capital boost, enhancing its ability to invest in higher-margin businesses with strong consumer demand.

Moreover, Olam’s Remaining Group will continue operating and managing assets that do not fall under ofi or Olam Agri, ensuring that the company retains a diversified footprint in global agribusiness.

However, the Olam-SALIC deal is emblematic of the shifting dynamics in global agriculture and food production. As nations place emphasis on food security and supply chain resilience, investments in agribusinesses with strong operational footprints are becoming increasingly valuable strategic assets. Transactions of this scale are expected to set the tone for future investments, where financial gains intersect with strategic food security objectives.

Apple shareholders have firmly rejected a proposal to dismantle the company’s Inclusion & Diversity program, signaling continued investor support for diversity initiatives even as other major corporations scale back similar efforts.

Per CNBC, the vote took place at Apple’s annual shareholder meeting on Tuesday, where the National Center for Public Policy Research (NCPPR) urged Apple to abolish its diversity, equity, and inclusion (DEI) efforts, arguing that such programs pose legal and financial risks.

The rejected proposal reflected a broader corporate and political shift away from DEI initiatives, driven in part by last year’s Supreme Court ruling against affirmative action in college admissions. Since then, major companies including Alphabet, Meta, Microsoft, Zoom, Amazon, McDonald’s, Target, Ford, Lowe’s, and Walmart have either scaled back or scrapped their DEI programs.

Despite this trend, Apple made it clear that it stands by its diversity initiatives—at least for now. CEO Tim Cook defended Apple’s DEI efforts, emphasizing that diversity remains a key driver of the company’s success.

The proposal, brought forward by NCPPR, specifically called for Apple to eliminate its DEI program, department, policies, and goals, claiming that such initiatives could lead to discriminatory hiring practices and potential legal liabilities. The group cited a CNBC report showing that other tech giants have scaled back diversity programs and referenced President Donald Trump’s recent executive order directing the Department of Justice to investigate potential DEI-related discrimination.

At the meeting, Stephen Padfield, executive director of NCPPR, argued that corporate America is shifting away from DEI initiatives and that Apple should follow suit.

“The risks to Apple stemming from continuing to push these divisive and value-destroying agendas is only increasing in light of President Trump’s recent executive order focusing the Department of Justice on rooting out illegal discrimination being carried out in the name of DEI,” Padfield stated. “The vibe shift is clear. DEI is out, and merit is in.”

Apple, however, rejected the proposal outright, arguing that it is already in full compliance with employment laws and that scrapping the DEI program would interfere with company strategy.

“Our strength has always come from hiring the very best people and then providing a culture of collaboration, one where people with diverse backgrounds and perspectives come together to innovate and create something magical for our users,” Tim Cook said.

However, Cook acknowledged that the evolving legal landscape might force Apple to make changes. The company’s approach to diversity will likely be influenced by growing legal challenges and shifting political pressures at the federal level.

Corporate America Retreats from DEI as Legal Risks Grow

The growing rollback of DEI programs across corporate America has been accelerated by legal and political pressures, particularly following the Supreme Court’s decision on affirmative action in 2024. The ruling, which struck down race-based admissions policies at universities, has had a ripple effect in the private sector, with companies reassessing their diversity hiring and promotion initiatives to avoid legal liabilities.

Since Trump returned to office in January, his administration has wasted no time in targeting corporate DEI policies. One of Trump’s first executive orders in his new term sought to dismantle federal DEI programs, setting the stage for heightened legal scrutiny of diversity efforts in the private sector.

Given these developments, corporations that continue to promote DEI are expected to face increasing pressure from investors, legal challenges, and potential regulatory action.

Apple’s DEI Commitments and Workforce Demographics

Unlike other members of the American tech industry, Apple has remained committed to diversity. The company’s DEI initiatives include internal support groups for underrepresented employees, accessibility features for people with disabilities, and research to mitigate racial bias in Apple products and services.

Apple’s workforce statistics, according to 2022 figures published on its website, show that nearly two-thirds (65%) of the workforce is male, 35% of employees are female, 42% are white and 30% are Asian.

Apple has not indicated whether it will modify its DEI programs in response to shifting legal and political pressures. However, Cook’s comments suggest that the company may eventually be forced to adapt its approach as the federal government and courts continue to scrutinize diversity policies.

Other Shareholder Proposals Rejected

The shareholder meeting also saw the rejection of several other key proposals related to Apple’s corporate governance and ethical responsibilities.

Shareholders voted against a proposal to require Apple to produce reports on:

• The ethical use of AI and data
• The costs and benefits of Apple’s efforts to combat child exploitation
• Apple’s charitable giving practices

Another proposal, brought forward by the National Legal and Policy Center, focused on Apple’s partnership with OpenAI. The group argued that Apple’s deal with OpenAI might contradict its strong stance on privacy and urged Apple to prepare a report on the risks of using private or unlicensed data to train AI models.

Apple opposed the proposal, arguing that it already discloses its AI privacy policies and that an additional report was unnecessary.

While activist proposals were largely rejected, Apple shareholders approved the company’s board of directors, auditor, and executive compensation package.

Notably, Tim Cook’s compensation package for 2024 was approved, with his total pay rising to $74.61 million, up from $64.21 million in 2023. Apple defended Cook’s salary, noting that under his leadership, Apple’s market capitalization has increased by over $3 trillion.

At the meeting, Cook also reaffirmed Apple’s commitment to its $500 billion U.S. investment plan, which was praised by Trump earlier this week.

“The U.S. is our home, and we’re deeply committed to the country’s future,” Cook said.

Additionally, Apple announced plans to increase its annual dividend, with further details expected in May.

“We’ve also paid out more than $165 billion in dividends, including $15.3 billion in just the last four quarters,” Cook stated.