Olam International is one step closer to a takeover of New Zealand Farming Systems Uruguay – the sale has been granted Overseas Investment Office approval.

The Singapore-based company still has to secure majority support, however, after increasing its bid for the company to 70 cents per share.

Olam already owns 18.5 per cent of Farming Systems, and has secured the stakes of ACC and PGG Wrightson – giving it control of more than 37 per cent of the company.

Uruguayan company Union Agricultural Group is also in the race.

Farming Systems chairman John Parker says shareholders should hold off making a decision until negotiations with Union and a mystery third bidder are complete.