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UPDATE 1-Investor group takes over grain handler CWB, renames it G3 Canada

Published 2015-07-31, 03:49 p/m
UPDATE 1-Investor group takes over grain handler CWB, renames it G3 Canada

(Updates with CEO comments)
By Rod Nickel
WINNIPEG, Manitoba, July 31 (Reuters) - G3 Global Grain
Group said on Friday it has closed its investment in Canadian
grain marketer CWB, becoming its majority investor, and has
renamed the company G3 Canada Ltd.
The move clears the way for G3 Global, a joint venture of
U.S.-based Bunge Ltd BG.N and Saudi Agricultural and Livestock
Investment Co, to build new grain-handling facilities at Port
Metro Vancouver on Canada's Pacific Coast and on the Canadian
Prairies. ID:nL1N0YO0VJ
G3 Canada combines the assets of CWB, including a few
country elevators, Eastern Canadian grain-handling facilities
and rail cars, with Bunge's Canadian grain assets.
"There's not a lot of overlap," said G3 Canada Chief
Executive Karl Gerrand. "It's actually very complementary."
The company is also developing plans to build a port
terminal at Hamilton, Ontario with storage capacity for 50,000
to 60,000 tonnes of grain, he said.
G3 Global's C$250 million ($192.65 million) purchase of a
50.1 percent stake in CWB, announced in April, removes a name
that long dominated the world grain industry. CWB, or the
Canadian Wheat Board, for decades held government-sanctioned
marketing control of Western Canada's milling wheat and barley.
The Canadian government removed those marketing powers in
2012, and the company operated for several years as a small
grain company.
Ian White, former CWB chief executive, has now retired.
($1=$1.30 Canadian)

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