SALIC-Bunge Joint Venture to Compete in Saudi Wheat Tenders
G3 Global Grain Group (G3), the joint venture between Saudi Agricultural and Livestock Investment Co. (SALIC) and Bunge, that just last month acquired a 50.1% controlling stake in Canadian grain handler, CWB for US$200 million, is planning to trade at wheat tenders held by the Saudi grain buyer.
In a phone interview with Reuters, SALIC’s chief executive officer, Abdullah Aldubaikhi said, “The quantities that we had before were not sufficient but now, after the acquisition, we will have enough to participate in the tenders.”
Saudi Arabia began to dismantle its domestic wheat production industry in 2008 due to water constraints, deciding to rely entirely upon imports facilitated by the Grain Silos and Flour Mills Organization (GSFMO) to meet its needs.
The details of the G3-CWB deal are scheduled to be finalized by July, at which time the G3 joint venture plans to already be taking part in GSFMO tenders under the name G3 or CWB.
“We want G3 to be an independent entity trading worldwide including in Saudi Arabia,” says Aldubaikhi says.
Mr. Aldubaikhi also stated that within three weeks G3 will be announcing a greenfield investment within the Canadian logistic sector regarding the building of facilities to complement existing logistics in the country, and added that SALIC is looking to expand its interests within Brazil, and will be announcing two investments in the country’s red meat and grain sectors within a month.
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