Seoul-based, CJ CheilJedang, is part of South Korean conglomerate CJ Group. Such a deal could be worth about $1.7bn, according to the reports.
The sale, which the companies aim to reach an agreement on this year, would include the South Korean company’s feed mills in China and Southeast Asia, sources told Bloomberg.
However, negotiations are ongoing and may not result in a deal, the insiders told the media outlet.
Last month, Bloomberg reported that CJ was planning to divest its domestic feed business on July 1 and would hold a shareholders meeting on May 31 to approve such a move.
Asian feed assets
CJ CheilJedang has 32 feed mills in Korea, Indonesia, Philippines, Vietnam, China, Cambodia and Myanmar.
Last year, the Korean feed producer added to its feed facilities in Vietnam, with two additional factories. The two new plants boosted CJ CheilJedang’s feed production capacity in Vietnam by about 400,000 tons to a total of 1.3 million tons a year.
The sale of the Korean company’s animal feed assets would come after a period of expansion by the CJ Group in foreign markets, particularly in the frozen-food business.
Julia Hart, spokesperson for Nutreco, said the Dutch company did not comment on speculation or rumor.
When asked about Nutreco’s ambitions in terms of the Asian market, she told FeedNavigator that “as a healthy growing business, we keep our eyes open for all kinds of different opportunities to help us do what we are doing, and, more than that, I can’t say.”
Nutreco employs over 12,000 people in 37 countries with net sales of €5.9bn in 2018. Its two global company brands, fish feed manufacturer, Skretting, and animal nutrition producer, Trouw Nutrition have sales in over 90 countries.
The Dutch group is a wholly owned subsidiary of SHV Holdings, a family-owned multinational with net sales of € 20.1bn in 2018; it acquired Nutreco in 2014.