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Reuters
Reuters
MUMBAI (Reuters Breakingviews) – Signs of deepening ties between Asia and the oil-rich Gulf are coming thick and fast. A planned Saudi Arabia-Singapore dual listing this year for Olam Agri, a trader of grains and seeds, is the latest example.
Earlier this month, First Abu Dhabi Bank revealed it considered a bid for $24 billion Standard Chartered – a sign of its big appetite for Asia exposure. The UK-listed lender and Olam Agri are both backed by Singapore’s Temasek. Elsewhere, bourse operator Hong Kong Exchanges and Clearing is looking to companies in the Middle East, as well as investors awash with petrodollars, to prop up future growth. It’s an increasingly symbiotic relationship.
Olam Agri’s initial public offering, which Reuters says could be worth up to $1 billion, follows the sale of 35% of itself to a unit of Saudi’s Public Investment Fund. That deal crystallises a valuation of the business at 76% of its parent, $4.6 billion commodities trader Olam Group, while the kingdom shores up its food security as well as its sleepy, richly valued capital market.
Corporate and financial moves underscore how the global pin-code, as Olam’s co-founder and Chief Executive Sunny Verghese puts it, is changing. Between population trends, the Russia-Ukraine war and polarising geopolitics, expect the Gulf and Asia to get cosier. (By Una Galani)
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(Editing by Robyn Mak and Katrina Hamlin)
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