China's Bright Foods bids $1.4 billion for CSR's sugar business

Shanghai municipal government-owned food producer Bright Food Group Co. is planning to acquire the sugar and renewable energy business of Australia's CSR Ltd. for cash, up to A$1.5 billion (US$1.4 billion).

CSR is a major building materials manufacturer with large sugar business and investments in aluminium, with operations throughout Australia as well as in Asia and New Zealand.

Analysts see this move as a sign of China's investment interests in Australian firms, diversifying beyond the energy and mining sectors.

Chinese companies have been on a spending spree, snapping up assets ranging from real estate to car makers, taking advantage of the depreciation in valuations owing to global economic downturn.

Bright Food vice-president Ge Junjie said the company was keen to invest in the Australian food industry, particularly in sugar.

''We would welcome the opportunity to work directly with CSR Ltd to discuss and hopefully finalise the details of a potential acquisition by Yantang of the sugar assets held by CSR Sugar,'' Ge said.