South Korea's CJ says no to sale of Brazil soy crusher, sources say

CJ CheilJedang

01/08/2022 13:59

By Ana Mano
    SAO PAULO, Aug 1 (Reuters) - South Korean conglomerate CJ
CheilJedang  097950.KS  has decided not to sell Brazilian soy
processor CJ Selecta after almost a year of talks with bidders,
according to two sources with knowledge of the matter.
    The prospective sale attracted strong interest from global
grain merchants at a time when Brazil's soy processing margins
had improved significantly.  urn:newsml:reuters.com:*:nL2N2WW18N
    U.S. firms Bunge  BG.N  and Cargill participated in the
talks until the final stage of the process, the sources said on
condition of anonymity because the negotiations were not public.
    Buying CJ Selecta, the world's largest producer of soy
protein concentrate (SPC) used as animal feed, would help grain
firms doing business in Brazil add higher-margin processed
products to their portfolio. 
    CJ's decision not to sell was internally communicated to
Brazilian employees of CJ Selecta on July 12, one of the sources
said. The company has been doing well at a time of scarce global
grain supplies and high commodity prices.  
    "It was not a question of money," a second source briefed on
the matter said. The Koreans received offers, including one for
around $600 million, the first source said, but decided to hold
onto the assets.
    CJ and bidder Cargill did not immediately respond to a
comment request.
    Bunge declined to comment.
    In 2017, CJ CheilJedang acquired a 90% stake in the
Brazilian soy crusher for 360 billion won ($276.30 million). 
    CJ Selecta belongs to a CJ CheilJedang unit called CJ Bio
Division. Aside from high-value SPC, it also makes soyoil,
organic fertilizer and ethanol in Minas Gerais state.
    In a regulatory filing on April 26, CJ CheilJedang had said
it was reviewing various strategic options for CJ Selecta,
without elaborating. 


($1 = 1,302.9300 won)

 (Reporting by Ana Mano; Editing by Paul Simao)
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