SAO PAULO (Reuters) – The South Korean proprietor of Brazilian soy processor CJ Selecta has put the corporate up on the market, drawing curiosity from massive worldwide grain merchants, in keeping with three sources with data of the matter.
U.S. firms Cargill Inc and Archer-Daniels-Midland Co are amongst two dozen companies which have sought details about CJ Selecta from its advisors, the sources stated on situation of anonymity as a result of they don’t seem to be approved to debate the method.
Shopping for CJ Selecta, the world’s largest producer of soy protein focus used as animal feed, would assist grain retailers doing enterprise in Brazil add larger margin processed merchandise to their portfolio. The corporate additionally makes soyoil, natural fertilizer and ethanol in Minas Gerais state.
Brazil is the world’s largest exporter of soybeans.
The vendor is South Korea’s conglomerate CJ CheilJedang, which declined to remark.
In a regulatory submitting on April 26, CJ CheilJedang stated it was reviewing varied strategic choices for CJ Selecta, with out elaborating. It stated it will situation one other assertion each time a call was made, “or throughout the subsequent three months.”
Cargill declined to remark. ADM didn’t reply to emails searching for remark.
One of many sources stated Morgan Stanley and PWC are advising CJ CheilJedang, including that talks are being held in New York and have lasted a number of months.
Some 24 firms confirmed an curiosity in CJ Selecta, which has projected annual gross sales of between $700 million and $800 million, in keeping with one supply.
There have been a least 4 non-binding bids as the method superior, stated one supply. One other stated there isn’t a affirmation about any deal being signed.
Morgan Stanley didn’t reply to a remark request.
PWC declined to remark.
CJ Selecta belongs to a CJ CheilJedang unit known as CJ Bio Division, which is eager on investing within the manufacturing of protein for human consumption over the subsequent 20 years, one supply stated.
As a result of CJ Selecta primarily focuses on protein used as animal feed, the Koreans are contemplating the sale, one individual stated.
In 2017, CJ CheilJedang acquired a 90% stake within the Brazilian soy crusher, paying 360 billion gained ($282.50 million).
Two years later it purchased the rest 10% stake.
($1 = 1,274.3200 gained)
Reporting by Ana Mano in São Paulo; Further reporting by Karl Plume in Chicago and Heekyong Yang in Seoul; Modifying by Caroline Stauffer, Alexandra Hudson
