No Progress in Talks with MBK... Deal Ultimately Withdrawn
"Focusing on Strengthening Internal Competitiveness"
CJ CheilJedang has withdrawn its plan to sell its bio business division. It appears the company decided that strengthening the competitiveness and growth potential of the bio division would be more beneficial, given the lack of progress in negotiations with MBK Partners.
On April 30, CJ CheilJedang officially announced that it has no plans to sell its bio business division.
Previously, CJ CheilJedang had been discussing detailed terms with MBK regarding the sale of the bio division. CJ CheilJedang was seeking around 6 trillion won, but MBK was unable to accept that price, ultimately resulting in the collapse of the deal.
MBK had also attempted to acquire CJ CheilJedang's bio business division last year, but the deal fell through due to a failure to agree on the sale price. MBK did not participate in the main bidding process held in mid-February. In the early stages, when news of the bidding first emerged, global private equity firms such as Blackstone, Carlyle, Kohlberg Kravis Roberts (KKR), and Texas Pacific Group (TPG) were also mentioned as potential acquirers, but all of them ultimately did not participate. Discussions between MBK and CJ CheilJedang resumed in March, about a month after the failed bidding process.
With the sale falling through once again, CJ CheilJedang is expected to focus on strengthening the competitiveness of its bio business division for the time being. The company plans to pursue business synergies through strategic alliances with leading global companies, continuously restructure its portfolio to focus on high-profit specialty products, and reinforce the role of its Fort Dodge plant in Iowa, United States, in response to tariff policies.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
