Thursday, April 16, 2015

CWB sold to Saudis

 Saudi Arabia and Bunge Canada have joined forces to buy controlling interest in the Canadian Wheat Board.

Farmers will retain 49.9 per cent of the shares in a trust, qualifying for shares at $5 per tonne for deliveries to the board made since Aug. 1, 2013.

The new partners have the option to buy out the farmers in seven years. They have paid $250 million, meaning the CWB is valued at $500 million.

Saudi Arabia is making the investment via its Saudi Agricultural and Livestock Investment company.
The new partners call their company 3G Global Grain Group. The former Canadian Wheat Board is called CWB.

CWB will be run by a seven-member board of directors, four chosen by 3G Global Grain and three by the Canadian government. The three will be named before the deal closes in July.

Agriculture Minister Gerry Ritz rejected a proposal for a farmer purchase of the CWB.

Bunge is one of five companies that control virtually all global trade in grain. Glencore, the largest, bought what once was the Saskatchewan, Manitoba and Alberta wheat cooperatives.