Australia’s Federal Court has turned down a bid by local conglomerate CSR Ltd to demerge its sugar business.
In a statement to the Australian stock exchange today (3 February), CSR said the court had “declined to make the orders” sought by the company.
Go deeper with GlobalData
The court rejected the plan over concerns over CSR’s asbestos liabilities. Its judgement claimed CSR would not be able to meet its liabilities if it demerged its sugar arm.
CSR said the ruling would have “broad implications” and that it would review the judgement and make a further announcement in due course.
The company said it would “responsibly meet” its asbestos claims and reiterated its desire to demerge the sugar unit.
“The board of CSR believes the strategy of separating its two very different operating businesses has the potential to create additional shareholder value,” it added.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataChina’s Bright Food Group has approached CSR to buy the sugar business but the Australian group has stated it prefers a demerger.
