South Korean conglomerate CJ CheilJedang has decided not to sell Brazilian soy processor CJ Selecta after almost a year of talks with bidders, according to two sources with knowledge of the matter.

The prospective sale attracted strong interest from global grain merchants at a time when Brazil's soy processing margins had improved significantly.

U.S. firms Bunge and Cargill participated in the talks until the final stage of the process, the sources said on condition of anonymity because the negotiations were not public.

Buying CJ Selecta, the world's largest producer of soy protein concentrate (SPC) used as animal feed, would help grain firms doing business in Brazil add higher-margin processed products to their portfolio.

CJ's decision not to sell was internally communicated to Brazilian employees of CJ Selecta on July 12, one of the sources said. The company has been doing well at a time of scarce global grain supplies and high commodity prices.

"It was not a question of money," a second source briefed on the matter said. The Koreans received offers, including one for around $600 million, the first source said, but decided to hold onto the assets.

CJ and bidder Cargill did not immediately respond to a comment request.

Bunge declined to comment.

In 2017, CJ CheilJedang acquired a 90 percent stake in the Brazilian soy crusher for 360 billion won ($276.30 million).

CJ Selecta belongs to a CJ CheilJedang unit called CJ Bio Division. Aside from high-value SPC, it also makes soyoil, organic fertilizer and ethanol in Minas Gerais state.

In a regulatory filing on April 26, CJ CheilJedang had said it was reviewing various strategic options for CJ Selecta, without elaborating. (Reuters)