Sale of 50.1% of CWB finalized, will be renamed G3 Canada Limited

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This article was published 30/07/2015 (3190 days ago), so information in it may no longer be current.

The $250 million sale of 50.1 per cent of the CWB to a partnership between Bunge Canada and a Saudi investment firm has been finalized.

And the closing of the deal also means the end of the CWB name.

It will now be called G3 Canada Limited.

Bunge Canada and Saudi Agricultural and Livestock Investment Company (SALIC) Canada Ltd. formed a partnership to make the bid on the CWB that was originally announced in April.

The deal was structured to allow Western Canadian producers to acquire shares in the entity — $5 of equity for every tonne of grain sold.

It remains to be seen if or how producers will ever be able to acquire the 49.9 per cent equity that the deal makes available.

Karl Gerrand, G3 Canada’s CEO, said, “The name change to G3 Canada Limited represents another step towards our vision of building a highly efficient coast to coast grain handling enterprise.”

Prior to the sale CWB had embarked on an aggressive capital campaign, building high throughput elevators across Western Canada, acquiring terminal facilities on the Great Lakes as well as acquiring Great Lakes freighters.

G3 will also roll in some Bunge assets including grain terminal and collection facilities in Quebec but it does not currently have a west coast terminal facility.

Building or acquiring that kind of presence is clearly now on the drawing board.

The company will continue to be based in Winnipeg.