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Canadian Wheat Board to become privatized company after $250 million investment.
April 16, 2015
G3 Global Grain Group (G3), a newly established agribusiness joint venture between Bunge Canada, a subsidiary of Bunge Limited and SALIC Canada Limited, a wholly owned subsidiary of Saudi Agricultural and Livestock Investment Company (SALIC), recently announced it is purchasing 50.1% of CWB with a C$250 million investment. The other 49.9% will be allocated to a trust for the benefit of farmers and administered through the Farmer Equity Plan announced by CWB in 2013. The new Canadian company will be headquartered in Winnipeg, Manitoba.
CWB currently operates seven grain elevators in Western Canada and port terminals in Thunder Bay, Ontario and Trois Rivieres, Quebec and plans to build four additional grain handling facilities in Bloom and St. Adolphe, Manitoba, and Colonsay and Pasqua, Saskatchewan. Bunge's export terminal in Quebec City, as well as four elevators in Quebec, will be part of the transaction.
"It is a dynamic time for Canadian agriculture. As global demand for agri-products grows, consumers continue to demand the high quality grain produced by our Canadian farmers," said Karl Gerrand, chief executive officer (CEO) of G3. "Our vision is to establish a highly efficient coast-to-coast Canadian grain enterprise that provides stronger market access solutions for growers and delivers value to our stakeholders and the Canadian agriculture industry as a whole."
CWB president and CEO Ian White, who will continue with CWB until closing and for a period of time thereafter, said G3's significant investment in CWB together with the Farmer Equity Plan will create a major new competitor by facilitating the continued expansion of the grain handling network.
The transaction was expected to close in July 2015.
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