CSR Limited (ASX:CSR) said it has agreed to sell its sugar and renewable energy business, Sucrogen, to Singapore listed agribusiness Wilmar International Limited (SIN:F34) for A$1.75 billion.
Under the sale agreement between CSR and Wilmar, CSR has agreed to defer implementation of its demerger of Sucrogen until 31 December 2010. The sale is expected to complete by the last quarter of 2010.
The deal comes after China's Bright Food made a formal offer to purchase Sucrogen. CSR had confirmed recently that it was in talks with China's Bright Food Group over a takeover of Sucrogen business.
Bright Food is not likely to make a counter-bid for the CSR's sugar business, said market sources.
CSR says it will be a focused building products company with a strategic investment in a globally cost competitive aluminium smelter.
Michelle Liang Asia Business News Asia Bureau Tel: +61-2-9247-4344 Email: firstname.lastname@example.org
Copyright (C) 2010 ABN Newswire. All rights reserved.