G3 Global Grain Group buys majority stake in G3 Canada Limited (formerly The Canadian Wheat Board)

On July 30, G3 Global Grain Group (G3 Global), a joint venture between  U.S. agrifood company Bunge Ltd. and a unit of Saudi Agricultural and Livestock Investment Co. (SALIC Canada Ltd.) closed its previously announced agreement to buy a 50.1 percent stake in The Canadian Wheat Board. The Canadian Wheat Board was recently renamed G3 Canada Limited (G3 Canada).  The total subscription amount was approximately $250 million. Immediately following closing, G3 Global made additional investments in G3 Canada to support its continued operations and growth and G3 Canada completed the acquisition of additional operating assets.

This investment in G3 Canada ensures that it can compete with the “best in the world” and provides farmers with the unique opportunity to have substantial equity in what is now an international grain company.

The sale of CWB, which was established in 1935, marks the end of an era. The former giant, which observed 80 years of operations earlier this month, was formed by Parliament to market wheat and barley in Western Canada and to monitor grain prices for farmers.

The acquisition follows receipt of applicable regulatory approvals.

The McMillan team advised longtime client Bunge Canada through the transaction. The McMillan team was led by Stephen Rigby and included Bruce Chapple, Brett Stewart, Ratika Gandhi, Sandra Knowler, Carol Samara and Enda Wong (mergers and acquisitions), Neil Campbell and Joshua Chad, (competition), Dave McKechnie (employment and labour), Pierre-Christian Collins Hoffman, David Rosentzveig and Rosalyn Wallace (commercial real estate), Carl Irvine and Andrew Stirling (Tax) and Jason Chertin (public markets).

G3 Global is majority owned by Bunge Ltd., a US$12-billion agriculture company based in White Plains, N.Y., with operations in 40 countries, and SALIC Canada, a wing of the Saudi Agricultural and Livestock Investment Co., established by Saudi Arabia’s king in 2011 to secure food supplies for a country that imports 80 percent of its food. The deal has since received some coverage in the media: CTV News, Maclean’s and Reuters Canada