CSR has sidestepped a political touchy deal with a big Chinese food group and plumped for a Singaporean company as the buyer of its sugar and ethanol business for $1.75 billion.

The sale will result in around $1.6 billion net being paid to CSR (the $1.75 billion was an "enterprise value).

It topped the reported $1.65 billion offer in yesterday's newspapers from China's Bright Foods Group.

Singaporean agri business company, Wilmar, wasn't mentioned in the reports yesterday and appears to have snuck up on the rail and won going away.

The news saw CSR shares rise yesterday by just over 3% to $1.755, which was hardly a ringing endorsement of the sale.

Wilmar says on its website that it is Asia's biggest agri business company.

"Wilmar International Limited, founded in 1991, is Asia's leading agribusiness group. We are amongst the largest listed companies by market capitalisation on the Singapore Exchange.

"Our business activities include oil palm cultivation, oilseeds crushing, edible oils refining, consumer pack edible oils processing and merchandising, specialty fats, oleochemicals and biodiesel manufacturing, and grains processing and merchandising.

"Headquartered in Singapore, our operations are located in more than 20 countries across four continents, with a primary focus on Indonesia, Malaysia, China, India and Europe. Supported by a multi-national staff force of more than 80,000 people, over 300 processing plants and an extensive distribution network, our products are sold to more than 50 countries globally."

Its major shareholders are significant, one Asian and one US-based. The large Asian conglomerate, the Kuok Group and its associate, the Kerry Group are big holders, along with Archer Daniels Midland Company (ADM) of the US. ADM is one of the world's biggest agribusiness groups.

Wilmar has a market value of around $US31 billion, which makes it a major player globally, something CSR could never hope to be. (Its Singapore market code is WIL.)

CSR chairman, Dr Ian Blackburne, said in a statement the sale of Sucrogen to Wilmar achieved the company's objective of separating its two very different operating businesses.

"Following the sale, CSR can focus on growing its building products business, which already has significant leverage to the Australia/New Zealand residential and commercial construction industries, combined with a strategic investment in a globally cost competitive aluminium smelter," CSR said in yesterday's statement.

The sale required Foreign Investment Review Board approval, as well as the green light from the Overseas Investment Office in New Zealand.

It is expected to be completed by the December quarter of this year.

CSR said the company was ''evaluating a range of capital management options'' for the $1.6 billion net proceeds of the sale".

''CSR will also review a variety of strategic opportunities over the coming months and capital management decisions will be made following this review,'' the company said.

''In evaluating these options, CSR continues to accept its responsibilities with respect to its asbestos liabilities and will maintain a responsible capital structure to support its future obligations.''