South Korea's CJ CheilJedang puts Brazil soy crusher CJ Selecta up for sale, sources say

CJ CheilJedang

10/05/2022 15:30

By Ana Mano
    SAO PAULO, May 10 (Reuters) - The South Korean owner of
Brazilian soy processor CJ Selecta has put the company up for
sale, drawing interest from large international grain traders,
according to three sources with knowledge of the matter.
    U.S. companies Cargill Inc  CARG.UL  and
Archer-Daniels-Midland Co  ADM.N  are among two dozen firms that
have sought information about CJ Selecta from its advisors, the
sources said on condition of anonymity because they are not
authorized to discuss the process. 
     Buying CJ Selecta, the world's largest producer of soy
protein concentrate used as animal feed, would help grain
merchants doing business in Brazil add higher margin processed
products to their portfolio. The company also makes soyoil,
organic fertilizer and ethanol in Minas Gerais state.
    Brazil is the world's largest exporter of soybeans.
    The seller is South Korea's conglomerate CJ CheilJedang
 097950.KS , which declined to comment.    
    In a regulatory filing on April 26, CJ CheilJedang said it
was reviewing various strategic options for CJ Selecta, without
elaborating. It said it would issue another statement whenever a
decision was made, "or within the next three months."
    Cargill declined to comment. ADM did not reply to emails
seeking comment.        
    One of the sources said Morgan Stanley and PWC are advising
CJ CheilJedang, adding that talks are being held in New York and
have lasted several months.
    Some 24 companies showed an interest in CJ Selecta, which
has projected annual sales of between $700 million and $800
million, according to one source.
    There were a least four non-binding bids as the process
advanced, said one source. Another said there is no confirmation
about any deal being signed.
    Morgan Stanley did not reply to a comment request.
    PWC declined to comment. 
    CJ Selecta belongs to a CJ CheilJedang unit called CJ Bio
Division, which is keen on investing in the production of
protein for human consumption over the next 20 years, one source
said.  
    Because CJ Selecta mainly focuses on protein used as animal
feed, the Koreans are considering the sale, one person said.
    In 2017, CJ CheilJedang acquired a 90% stake in the
Brazilian soy crusher, paying 360 billion won ($282.50 million).
    Two years later it bought the remainder 10% stake.

($1 = 1,274.3200 won)

 (Reporting by Ana Mano in São Paulo; Additional reporting by
Karl Plume in Chicago and Heekyong Yang in Seoul
Editing by Caroline Stauffer, Alexandra Hudson)
 ((ana.mano@thomsonreuters.com; Tel: +55-11-5644-7704; Mob:
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