Deal between CWB and G3 finalized

Aug 04, 2015

Price tag was around $250 million

A deal to sell the Canadian Wheat Board (CWB) to the G3 Global Grain Group, has been finalized.

Sold

The deal, worth around $250 million was announced in April 2015. It will see G3, who’s made up of Bunge Canada and SALIC (Saudi Agricultural and Livestock Investment Company) Canada, own about 50.1% of the CWB.

The remaining 49.9% of the CWB will be left in trust for the farmers who supply the board with their products.

The sale of the CWB means there is no longer a monopoly in the Canadian grain sector and allows for farmers to choose where they sell their grains.

"Canada's farmers depend on an efficient gateway to get their top quality products to the world,” said Agriculture Minister Gerry Ritz. “Today, we see how Marketing Freedom continues to open the way for investments in the grain industry leading to jobs and growth for farmers and Canadians.”

Farmers of North America, a group of nearly 3,000 farmer-investors valued the CWB between $250 and $300 million but had their bid rejected.

The journey for the Canadian Wheat Board to get to this point has been in the works since 2011:

December 2011, Marketing Freedom for Grain Farmers Act passes
August 2, 2012, Farmers get the freedom to market their wheat and barley
2012 – 2015, CWB considers potential investors that will allow it to become independent of government and an attractive choice for farmers

On April 9, 2015, a farmer-led group had their appeal declined by the Supreme Court of Canada after they were looking for $17 billion in damages from the federal government.

Join the conversation and tell us your thoughts about the finalization of the sale of the Canadian Wheat Board to G3 Global Grain Group. What could this mean to you going forward?

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