- COMESA watchdog opens inquiry into SALIC’s planned Olam Agri stake
- Stakeholders invited to submit views on potential competition risks
Africa’s top trade bloc has launched an antitrust probe into Saudi Arabia’s planned multi-billion-dollar takeover of Olam Agri, escalating scrutiny over food security and market dominance.
The Common Market for Eastern and Southern Africa (COMESA) Competition Commission said it would assess whether the entire $3.5 billion deal is likely to substantially lessen competition or conflict with public interest across the region. The move follows a formal merger notification from the parties.
SALIC, owned by Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), invests heavily in agriculture and food commodities worldwide. It already operates in nine COMESA member states, including Egypt, Kenya and Zambia.
Olam Agri, the target company, is a global agricultural processor and merchant with operations in 14 COMESA countries such as Ethiopia, Uganda and Zimbabwe. The deal would see SALIC indirectly acquire between 44.58% and 64.57% of Olam Agri’s issued share capital.
Observers say the scale of the transaction makes it one of the most closely watched mergers of 2025. “This is one of the most interesting M&A deals to watch this year,” legal counsel Silver Kayondo wrote on X, pointing to the commission’s inquiry notice.
Wider food security implications
Analysts note that the deal reflects a broader global trend in which Gulf states are investing in agricultural supply chains to secure long-term food security. The Saudi Public Investment Fund has been expanding into Africa, where arable land and commodity markets offer strategic opportunities.
A 2024 report by the African Development Bank warned that rising foreign acquisitions in Africa’s food and agriculture sectors could reshape local markets, both by increasing capital inflows and raising concerns over market dominance. COMESA’s review, analysts say, will test how regional regulators balance investor appetite with fair competition.
The commission has issued a public notice inviting written submissions from stakeholders, including competitors, suppliers and customers of the two firms. No timeline has been set for a final ruling.
