SALIC acquired 200 thou. ha agricultural asset Baladjie Pty in Australia
On March 28th, 2019, Saudi Agricultural and Livestock investment company (SALIC) Australia announced the acquisition of Baladjie Pty Ltd, an aggregation of over 200,000 hectares of farming in Western Australia’s wheatbelt that also carries a 40,000 head Merino sheep flock.
The transaction was closed after receipt of non-objection approval from Australia’s Foreign Investment Review Board (FIRB).
According to SALIC KSA CEO, Mr Matthew Jansen: “The acquisition of Baladjie is an important step for SALIC as we continue to build our global footprint in a meaningful way. It is our first acquisition in Australia as well as our first investment in sheep production.”
SALIC’s Head of Production Agriculture Investments, William England, explained that the local team will build on the legacy of John Nicoletti with plans to manage the livestock and grain production enterprise for the long term with a focus on sustainability, profitability, environmental responsibility and support for the local rural community.
The company did not disclose the transaction amount. However, The Press and Journal reports that the business cost SALIC AUS$60 million (more than US$ 43 million).
"News that such a huge parcel of land — which comprises freehold and leasehold land over 30 original farms mostly in the eastern and northern Wheatbelt — could fall into foreign hands drew widespread criticism on social media, particularly of government policy. Many people said the land should be retained locally," the message says.
Ex-owner of Baladjie Pty, John Nicoletti, who also runs six John Deere dealerships, decided to exit farming to concentrate on the machinery side of his businesses.
"What it means for me is that I can slow down a bit now and just concentrate on my dealerships, and that's a big weight off my shoulders," he said.
The sale is one of the biggest land parcel transactions in Australia, and first with SALIC.
In September 2018, SALIC acquired the Ukrainian Mriya Agroholding. Upon completion of the deal, Mriya continued its operations in Ukraine alongside SALIC's subsidiary, Continental Farmers Group (CFG).
