Chinese interest in buying Australian-based CSR's sugar and renewable energy assets -- including a majority stake in the operation that owns the Chelsea brand and Auckland refinery in this country -- is being seen as the start of an expanded drive into Au
Chinese interest in buying Australian-based CSR's sugar and renewable energy assets -- including a majority stake in the operation that owns the Chelsea brand and Auckland refinery in this country -- is being seen as the start of an expanded drive into Australia.
CSR owns 75 percent of The New Zealand Sugar Co, which owns the Chelsea brand, and the waterfront refinery on Auckland's North Shore. The other 25 percent of NZ Sugar is owned by Australian cane growing group Mackay Sugar.
Yesterday, Chinese food and retail group Bright Food announced its interest in buying the CSR sugar cane energy assets, which it valued at $A1.5 billion ($NZ1.87b), but the group said it did not possess all information for a final valuation.
Bright said it had offered to hold talks with CSR to develop a proposal, but also said its expression of interest in CSR should not be considered an offer and it carried no obligations.
A story in the Sydney Morning Herald today said the move by Bright underscored China's insatiable appetite for raw commodities.
It had put the debate over China buying Australian assets into sharp focus and threw plans to demerge CSR's sugar and renewable energy units from its building products businesses into greater flux, the newspaper said.
Observers saw the move as a precursor to the next wave of Chinese investment in Australian assets.
In the past year China had spent a record $US25b ($NZ33.83b) on 21 placements with Australian companies and 17 acquisitions.
Sir Ron Brierley's Guinness Peat Group, which holds around 5 percent of CSR, has previously presented break-up proposals to the board of CSR.
GPG's Gary Weiss told The New Zealand Herald today that his company was not surprised by Bright's interest.
"We've recognised for some time that the value inherent within CSR's conglomerate structure was not being recognised by the market," Mr Weiss said.
It was difficult to form a view on the Bright offer at this stage, he said.
Sign up to get the latest stories and insights delivered to your inbox – free, every day.
