Building firm CSR Ltd has agreed to sell its Asian businesses to the Rockwool Group for A$128 million (A$1 = RM2.70), but the company’s Malaysian plant is not included in the deal.
Rockwool is based at Hedehusene, near Copenhagen in Denmark, and is one of the world’s largest providers of insulation.
Under the deal, Rockwool will acquire 100 per cent of CSR’s insulation, panels and trading businesses across Asia. The deal excludes CSR’s autoclaved aerated concrete plant in Malaysia.
The sale was in line with CSR’s focus on building products markets in Australia and New Zealand, the Australian company said.
“While we have operated successfully in Asia for over 25 years, our core geographic focus remains on Australia and New Zealand where we have strong market positions and brand leadership,” CSR building products chief executive Rob Sindel said in a statement yesterday.
“We believe it is now appropriate to focus our strategic agenda on these markets, whilst providing the Asian businesses, the opportunity to develop further under a different ownership structure,” he added,
CSR’s technical insulation business owns and operates three mineral wool factories in China, Malaysia and Thailand. CSR also owns and operates a Rokcore panels plant in China. CSR also has sales offices in the Philippines, Vietnam and Singapore.
The transaction is expected to be completed over the next six months, the companies said.
Rockwool called the latest deal “a major leap forward” for its business in Asia and said it would allow it to establish a bridgehead in China.
“The acquired businesses complement very well the existing Rockwool business in Asia centred in Malaysia,” Rockwool said.
Wilmar, the world’s largest listed palm oil firm, said yesterday it was keen to grow its sugar business by setting up operations in Indonesia and Brazil.
It made the comment during an analyst and media briefing about its plans following its agreement to purchase Sucrogen.
“Sucrogen will allow Wilmar to build a leading position in sugar, starting with Indonesia,” the Singapore-listed firm said in a Powerpoint presentation. – Bernama, Reuters