Posted on February, 28, 2025 at 05:10 pm
The majority owner of G3 Canada has just become the majority owner of a much bigger grain company.
The Saudi Agricultural and Livestock Investment Company (SALIC) has a 75 per cent ownership stake in G3 Global Holdings, with the other 25 per cent controlled by Bunge.
G3 Global is the majority owner of G3 Canada Ltd., which operates 19 grain elevators in Western Canada, one in Quebec and port terminals in Thunder Bay, Hamilton, Quebec City and Trois Rivieres.
The other ownership partners in that venture are western Canadian farmers via G3’s Farmers Equity Plan.
G3 Canada was recently in the news because there was speculation Bunge would have to divest its ownership stake in the company as part of its takeover of Viterra.
However, the federal government did not make that a requirement when it approved the takeover earlier this year, much to the chagrin of some farm groups.
Now SALIC is making headlines with the announcement that it is increasing its ownership position in Olam Agri, which is the fifth largest grain company in the world, according to a January 2025 ranking by EssFeed.
Olam Agri processed 39 million tonnes of grain in 2023, generating US$23.41 billion in revenues and $723.9 million in earnings.
SALIC was established in 2009 as the food and agriculture investment arm of the Public Investment Fund of the Kingdom of Saudia Arabia.
SALIC has agreed to increase its ownership stake in Olam Agri to 80.01 percent from 35.43 per cent through a US$1.78 billion transaction with Olam Group. The deal is subject to regulatory approvals.
“This acquisition underscores SALIC’s ambition to secure a key position in the global grains sector,” SALIC’s chief executive officer, Sulaiman AlRumaih, said in a news release.
Olam Group has agreed to sell its remaining 19.99 per cent stake to SALIC on the third anniversary of the completion of the $1.78 billion deal, making SALIC the sole owner of the Singapore-based grain company.
Neil Townsend, chief market analyst with GrainFox, wonders if SALIC’s stronger ties with Olam might spell the end of its partnership with Bunge.
“I think it would almost have to,” he said.
He thinks G3 has relied on Bunge to assist with its international marketing efforts, but it can now lean more heavily on Olam’s experience and contacts.
Olam is a major player in Southeast Asia where a lot of Canadian grain is exported, so there could be some good synergies for G3.
“I don’t think it hurts,” said Townsend.
G3 was contacted for this story but declined to be interviewed.
In the meantime, SALIC continues to invest in Canada’s grain sector through its ownership stake in G3.
G3 recently announced plans to build a new grain terminal facility at the Port of Trois-Rivieres, Que.
The project will replace the company’s current facility at the port to improve efficiency, safety and reduce environmental impact.
The new 65,000 tonne facility will feature three high-speed receiving lanes, significantly reducing wait times and increasing its grain handling capacity at the port.
G3 is also installing three new modern ship loaders with “state-of-the-art” dust control technology.
The project is expected to be complete ahead of the 2027 growing season.
Source: Producer