Australia’s CSR Sugar Rejects China Bid

CSR Ltd., Australia’s biggest raw sugar miller, will proceed with a spinoff of the business from its building material and aluminum units after rejecting a $1.5 billion ($1.4 billion) offer from China’s Bright Food Group Co.

The demerger is the “preferred option” and is in the best interests of shareholders, Sydney-based CSR said today in a statement after studying the Bright Food proposal. Chen Chunshan, group company spokesman for Bright Food, couldn’t immediately comment when contacted in Shanghai.

CSR, Australia’s second-largest maker of building products, has been seeking to sell the sugar business to take advantage of surging prices. The unit may be a target for companies such as Bunge Ltd. and Cargill Inc., RBS Equities (Australia) Ltd. said this week. An enterprise value of more than A$1.5 billion was “entirely conceivable,” the bank said.

The full story from Bloomberg.