CJ CheilJedang Corp. has decided against selling its ownership stake in the Brazilian soy processing subsidiary, CJ Selecta, to Bunge Global SA. This decision was revealed in a filing with the Korean Exchange and reported by Korean news outlets.
In October 2023, CJ CheilJedang had agreed to a share purchase agreement to transfer 66% of CJ Selecta's shares to Bunge's Brazilian division. CJ CheilJedang holds 10% of CJ Selecta, with an additional 56% held by CJ Latam, a special purpose corporation of CJ CheilJedang. The two companies had been in exclusive negotiations following the initial share purchase agreement in October 2023. The transaction was valued at approximately USD 335 million.
The electronic filing from CJ CheilJedang on April 25 stated that "the possibility of fulfilling the deal's required preconditions is uncertain." The company further explained that it utilized its "contractual rights and informed the other party of the contract's termination to eliminate uncertainties and prioritize stable business operations.”
CJ CheilJedang acquired the company in 2017 and subsequently changed its name from Sementes Selecta to CJ Selecta. Located in Minas Gerais, Brazil, CJ Selecta is a major exporter of soy protein concentrate, with a production facility in Araguari, a sales office in São Paulo, and various branches throughout Brazil.
Don't miss the recent carbon footprint data from CJ Selecta's soy protein concentrate published in Aquafeed Magazine.
