04/15/2015 09:57 EDT | Updated 06/15/2015 05:59 EDT

Canadian Wheat Board Privatized With Sale To G3 Global Grain Group

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The company that was once Canada's monopoly wheat marketing board has been sold off to a joint venture controlled by U.S. and Saudi companies.

G3 Global Grain Group, as the wheat board's new owner is known, is owned by food company Bunge Canada, a subsidiary of New York-based Bunge Ltd., and SALIC Canada, a subsidiary of Saudi Agricultural and Livestock Investment Co.

The Canadian Press reports:

WINNIPEG - The federal government is privatizing the Canadian Wheat Board by selling majority ownership to G3 Global Grain Group.

The new company, based in Winnipeg, will get 50.1 per cent of the organization in exchange for an investment of $250 million.

The remaining 49.9 per cent will be kept in trust for farmers who deliver grain to the board.

Ottawa says the agreement will see a new coast-to-coast grain processing and shipping network.

It also says the deal will increase Canada's ability to export grain, create jobs and spawn economic growth in the Prairies.

Terms are expected to be finalized June 1.

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