Ana Mano

SAO PAULO (Reuters – According to three sources familiar with the matter the South Korean buyer of Brazilian soy processor CJ Selecta put his company up for auction, drawing attention from large international grain traders.

U.S. companies Cargill Inc and Archer-Daniels-Midland Co 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.

CJ Selecta is the largest soy protein concentrate producer in the world. This would allow grain merchants operating in Brazil to add more processed products to their product portfolio. CJ Selecta also manufactures soyoil, organic fertiler, and ethanol in Minas Gerais.

Brazil is the largest soybean exporter in the world.

South Korea’s CJ CheilJedang conglomerate declined to comment.

CJ CheilJedang filed a regulatory document on April 26. The filing stated that the company was reviewing several strategic options to CJ Selecta. However, it did not provide any further details. CJ CheilJedang stated in a regulatory filing that it will issue another statement “or within three months” if a decision is made.

Cargill refused to comment. ADM has not responded to requests for comment.

According to one source, Morgan Stanley CJ CheilJedang has been advised by PWC (NYSE:)

According to one source, CJ Selecta was approached by 24 companies. It has annual sales projections of $700-$800 million.

One source said that at least four bids were received as the process progressed. One source said that there was no evidence of any agreement being signed.

Morgan Stanley has not responded to our comment request.

PWC did not respond to our request for comment.

CJ Selecta belonged to CJ CheilJedang’s CJ Bio Division. One source claimed that they are keen on investing in protein production for humans over the next 20-years.

CJ Selecta is a company that primarily focuses on animal feed protein. The Koreans may be interested in the sale of the business, according to one source.

CJ CheilJedang bought a 95% stake in the Brazilian soy crushing plant for 360 billion won (282.50m).

The remaining 10% was purchased by the company two years later.

($1 = 1,274.3200 won)