Shanghai-based Bright Food is on its way to signing a contract with Australian conglomerate CSR over the sale of the latter's Sucrogen. Reports suggested a settlement could be reached as soon as today.

The Chinese company is offering $1.75 billion for the acquisition of CSR's sugar arm, although reports earlier this week hinted that it may lower its proposed price to $1.65 billion.

The group's vice-president Ge Junjie is visiting Australia for the third time to negotiate with CSR as part of talks that commenced last year and resulted in an initial offer for the company for $1.5 billion in January this year.

CSR's board met in Sydney on Tuesday, and the final steps were being discussed with Mr Ge this week. The potential deal would put an end to CSR's plans to demerge the business.

"(Bright Food) chairman Wang Zongnan is preparing to announce the deal at a conference held by the Shanghai municipal state-owned assets regulator at the end of the month," CSR said.

Mr Ge was set to fly back to China today after he had signed the deal.
Any deal, however, still need to pass Australia's Foreign Investment Review Board which extended its examination of the possible transaction by 90 days in mid May. It is unclear what impediments Bright Food faces for China's approval.

Shares of CSR went down 3 cents, or 1.7 per cent, to $1.71 in trading this morning in a weaker market overall. The benchmark S&P/ASX 200 index slid by more than 1 per cent amid a weak Wall Street.