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CJ CheilJedang decides against selling stake in Brazilian subsidiary

Published: 29 Apr. 2025, 11:54 Updated: 29 Apr. 2025, 14:41

CJ CheilJedang

CJ CheilJedang canceled plans to sell its stake in its Brazilian subsidiary, CJ Selecta, to "eradicate management uncertainties," according to the company.

The food commodities giant decided in October 2023 to enter into a share purchase agreement (SPA) to sell 66 percent of the subsidiary’s shares to the Brazilian subsidiary of U.S. grain company Bunge.

However, CJ CheilJedang said that "the possibility of meeting the transaction's precedent conditions is unclear," according to the company's electronic filing on Friday. The company also said it exercised its "contractual rights and notified the counterparty of the contract termination to resolve uncertainties and focus on stable business operations."

CJ CheilJedang owns 10 percent of CJ Selecta, while 56 percent is owned by the giant’s special purpose corporation, CJ Latam.

Founded in 1984, CJ Selecta holds the biggest position in the global soybean processing industry, particularly in the production of soy protein concentrate, a crucial ingredient in animal feed. The subsidiary's revenue for 2024 reached 714 billion won (496.9 million), which was 7.6 percent lower than their 2023 portfolio.

CJ CheilJedang had previously acquired a total of 66 percent of the company's shares through transactions in 2017 and 2019.

BY KIM MIN-YOUNG [[email protected]]