The Trump administration’s evolving tariff policies, particularly toward Chinese and other Asian goods, have intensified the importance of CJ CheilJedang’s Iowa-based manufacturing facility – the only such plant owned by a major global amino acid producer in the US.“CJ is uniquely positioned with its global manufacturing footprint, including 11 overseas facilities that allow for flexible production and tariff hedging,” said a person familiar with the matter.“In light of escalating US-China tensions, CJ saw greater long-term value in nurturing the bio unit rather than selling it.” Last week, CJ also cancelled the sale of a 66% stake in Brazilian soybean crusher CJ Selecta S.A.after more than a year of negotiations with US grain trader Bunge Ltd.
CJ CheilJedang Corp., South Korea’s largest food and beverage company, said on Wednesday it has scrapped a planned sale of its green bio business, a deal valued at 5 trillion won ($3.5 billion), opting instead to retain and expand it amid growing geopolitical uncertainty and rising strategic importance of its US production base.
CJ and its sale manager, Morgan Stanley, said in February that private equity firm MBK Partners and two leading Chinese biotech firms – Guangxin Group and Meihua Group – were in the final stage of the competition, conducting due diligence on CJ’s bio business.
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