KB News Desk
CJ CheilJedang is reportedly weighing a sale of its starch-based sweetener business, the latest step in a broader effort to divest low-growth operations since overhauling its corporate structure earlier this month.
According to industry sources on Wednesday, the South Korean food conglomerate is in talks with financial investors about a potential carve-out sale of the unit, with a local accounting firm advising on the process. Industry estimates put its value at around 300 billion won ($207 million).
In the business-to-business market for starch-based sweeteners used by beverage and processed-food manufacturers, CJ CheilJedang holds roughly 12 percent, trailing Daesang, Sajo CPK and Samyang among the four companies that control more than 90 percent of the sector.
“This is part of our future innovation strategy to divest marginal businesses with low growth potential and profitability,” a CJ CheilJedang official said, adding that multiple options remain under review with nothing finalized.
The unit was also the subject of a recent Fair Trade Commission investigation into alleged price collusion involving starch sweeteners, sugar and flour, which resulted in a 102.9 billion won fine over the starch-sweetener case specifically.
The potential sale follows a broader restructuring launched in July that split CJ CheilJedang’s food and bio divisions into three units: lifestyle food, technology materials and core ingredients. The overhaul is aimed at concentrating resources on global K-food products and high-value-added materials while shedding underperforming segments, the company said.
