Legal fight clouds auction of Brazil soy processor Imcopa
Dispute over control threatens $297M sale of crushing plants in Paraná
2 June 2025
2 minute read
By: A legal dispute over control of Brazilian soy processor Imcopa, which has been under bankruptcy protection for about a decade, is threatening to derail a court-run auction for two crushing plants in southern Brazil that had previously drawn interest from major traders Bunge and Cargill, reported Reuters.
R2C Investimentos, an asset manager that appointed Imcopa's former management, is challenging what it called "irregularities" related to the July 3 auction, and vowed in a statement to warn potential bidders of "the illegalities of the competitive process."
An attorney for brewer Cervejaria Petropolis, whose owner acquired most of Imcopa's defaulted loans through firms in Brazil and abroad, said ongoing litigation in multiple jurisdictions should not affect the auction. The minimum price for the two plants and Imcopa's soyoil brand is 1.7 billion real ($297.35 million), court filings showed.
The auction marks the latest attempt to sell the two Imcopa crushing plants located near soy-rich regions and a large port in Parana state. It is a rare acquisition opportunity in Brazil, the world's largest soybean producer and a major soymeal exporter. However, legal risks involved and current negative crushing margins in Brazil may keep buyers at bay.
In February 2020, US grains trader Bunge made the sole bid for the two plants, which have annual crushing capacity of 1.5 million metric tons of soy and specialise in non-transgenic soy processing. At the time, about 1 billion reais of debt were attached to the plants, whose sale process was run by the state bankruptcy court overseeing Imcopa's restructuring since 2013.
The deal unravelled in 2021 amid the protracted court battles involving Cervejaria Petropolis, which had a leasing arrangement to operate the plants at the time.
Bunge, which never took control of the assets, declined to comment.
In 2023, Cargill advised the court of its potential interest in Imcopa's assets, seeking clarification about the liabilities involved, documents seen by Reuters at the time showed, but a deal did not materialize.
Cargill declined to comment on Imcopa's new auction, which will require buyers to deposit the minimum value in an escrow account to repay lenders and taxes, according to Cervejaria Petropolis.
After Bunge's failed takeover attempt, it maintained an arrangement with Cervejaria Petropolis to supply soybeans to Imcopa in exchange for finished products. The brewer's attorney said that deal lapsed last year, when both plants were idled for maintenance.
Cervejaria Petropolis has run Imcopa since March 2024, when the bankruptcy court gave it control after a criminal probe targeting former Imcopa executives, the brewer said at the time.
That sealed investigation is still underway. R2C has denied any wrongdoing involving Imcopa's former management.
($1 = 5.7172 reais)
