Dutch aqua-feed producer Nutreco NV is in advanced talks to acquire CJ Cheiljedang Corp.'s animal feed assets for about 2 trillion South Korean won, Bloomberg News reported May 27, citing people with knowledge of the matter.
CJ Cheiljedang operates around 32 feed mills in Korea, Indonesia, Philippines, Vietnam, China, Cambodia and Myanmar. The potential deal will likely include CJ's feed mills in China and Southeast Asia, with an agreement expected to be reached this year, the sources reportedly said.
However, the discussions are ongoing and may not result in a deal, the report said.
A spokesman for CJ told Bloomberg that the company has not decided to sell its feed business. Last month, the company said it was planning to spin off its domestic feed business on July 1 and planned a shareholder meeting to take place on May 31 to approve the proposed spin off, according to the news outlet.
Shares of CJ were up 1.99% at 282,000 won as of market open in Seoul.
Meanwhile, a spokesperson for SHV Holdings NV-owned Nutreco declined to comment "on market rumor or speculation," but said the company is continuously looking for opportunities that support its goal of remaining a leader in animal nutrition and aqua feed.
The news comes just days after CJ agreed to sell a 27% stake in its U.S. arm, CJ Foods America, to U.S. private equity fund Bain Capital LP for $320 million. In February, CJ closed its $1.84 billion acquisition of U.S. frozen food company The Schwan Food Co. Inc..
As of May 27, US$1 was equivalent to 1,183.81 South Korean won.