Close X
Thursday, November 28, 2024
ADVT 
National

Government Privatizes Wheat Board With Sale To G3 Global Grain Group

Darpan News Desk The Canadian Press, 15 Apr, 2015 12:03 PM
    WINNIPEG — The federal government is privatizing the Canadian Wheat Board with a sale to a Saudi-owned company.
     
    G3 Global Grain Group will get 50.1 per cent of the company in exchange for an investment of $250 million. The other 49.9 per cent will be kept in trust for farmers who deliver grain to the board.
     
    Any farmer who does deliver will get $5 per tonne in equity in the organization. In seven years, G3 Global Grain Group has the option to buy back the shares from farmers at market value.
     
    G3 is a joint venture between Bunge Canada, and SALIC Canada, a subsidiary of Saudi Agricultural and Livestock Investment Company.
     
    The board says the agreement will see development of a new coast-to-coast grain processing and shipping network in Canada. It says the deal will also increase Canada's ability to export grain, create jobs and spawn economic growth in the Prairies.
     
    "By bringing together these great companies we are creating a powerful new player in the western Canadian grain space, offering farmers greater choice and securing better access to international customers," G3 President and CEO Karl Gerrand said in a release.
     
    Terms are expected to be finalized June 1.
     
    The NDP accused the government of "giving away" the wheat board "free of charge" when rumours spread in December that the Conservatives were planning to sell off the board in exchange for an investment in the company. At the time, the government said partnering with an investor would help make the board "a viable marketing option" for Canadian farmers.
     
    Agriculture Minister Gerry Ritz said lifting the monopoly attracted a number of potential investors.
     
    "This investment deal offers Canadian farmers access to a new global player to compete for their grain and more delivery points for farmers to sell their grain," he said in a statement. "The result of these new investments and jobs will provide a huge economic benefit to the grain sector and Canada's overall economy."
     
    Since the 1940s, Prairies farmers have had to sell their wheat and barley to the board, which in turn exported it to foreign markets. Despite vocal opposition and several lawsuits, the federal government went ahead with a long-standing promise to abolish the monopoly three years ago.
     
    A proposal that would have seen a farmer-owned entity acquire the wheat board was rejected by the board last year.

    MORE National ARTICLES

    Nova Scotia Court Upholds Ruling Against Wrongfully Convicted Man

    Nova Scotia Court Upholds Ruling Against Wrongfully Convicted Man
    HALIFAX — A Nova Scotia court has rejected the appeal of man who argued unsuccessfully last year that RCMP negligence caused his wrongful conviction on a statutory rape charge 45 years ago.

    Nova Scotia Court Upholds Ruling Against Wrongfully Convicted Man

    Indian PM Narendra Modi Arrives In Ottawa For First Visit With Domestic Overtones

    Indian PM Narendra Modi Arrives In Ottawa For First Visit With Domestic Overtones
    After a formal meeting Wednesday, Harper will accompany the charismatic Modi to Toronto and Vancouver and will have no less than 16 fellow Conservatives appearing with them at various events, from cabinet ministers to MPs.

    Indian PM Narendra Modi Arrives In Ottawa For First Visit With Domestic Overtones

    Richmond Photographer Denies Police Version Of Confrontation With Actor Ryan Reynolds

    Richmond Photographer Denies Police Version Of Confrontation With Actor Ryan Reynolds
    VANCOUVER — A Vancouver-area paparazzo reportedly arrested after a confrontation with actor Ryan Reynolds says the story being circulated is 100-per-cent false.

    Richmond Photographer Denies Police Version Of Confrontation With Actor Ryan Reynolds

    Burnaby Resident Files Petition To Recall 'Failed' MLA, Richard T. Lee: Elections BC

    Burnaby Resident Files Petition To Recall 'Failed' MLA, Richard T. Lee: Elections BC
    VICTORIA — Elections BC says a Burnaby resident has filed a petition to have a provincial politician recalled for allegedly failing to take action on important issues.

    Burnaby Resident Files Petition To Recall 'Failed' MLA, Richard T. Lee: Elections BC

    B.C. 'Hosed' In Port Coquitlam Land Sale To Liberal Donor

    B.C. 'Hosed' In Port Coquitlam Land Sale To Liberal Donor
    VICTORIA — The Opposition New Democrats say British Columbians were "hosed" in a Crown land sale that was snapped up by a Liberal donor at $43 million below the appraised value.

    B.C. 'Hosed' In Port Coquitlam Land Sale To Liberal Donor

    Indian P.M. Narendra Modi Arrives In Ottawa Today For Three-day Canadian Visit

    Indian P.M. Narendra Modi Arrives In Ottawa Today For Three-day Canadian Visit
    Modi's three-day trip is being billed by Prime Minister Stephen Harper's office as a chance to broaden trade involving education, energy and science and technology.

    Indian P.M. Narendra Modi Arrives In Ottawa Today For Three-day Canadian Visit