Australian sugar merger a sweet deal

One of Australia’s largest cane-growers Maryborough, owner of Maryborough Sugar Factory, has announced a $90.4 million bid for Tully Sugar.

Maryborough Sugar Factory, the only publicly listed pure sugar company in Australia, had been in talks with Tully since last year, but the deal looked dead after merger talks between the two parties ceased three months ago.

A successful bid will mean the creation of a significant competitor in the sugar industry, with the merged entity said to be capable of producing 500,000 tonnes of raw sugar annually, with an increased cane crushing capacity of around 5 million tonnes per annum.

“We believe that the merger Offer proposal Maryborough has put forward is an excellent opportunity for Tully Shareholders to have investment liquidity at a fair value, and to be part of an established ASX-listed sugar group,” Maryborough’s Chairman, Mr James Jackson, said.

“Importantly, if the Maryborough proposal succeeds Tully Shareholders will become investors in a widely-held sugar company of significant value, with a clear mandate of continued growth in Far North Queensland, whilst pursuing improved returns to growers and investors alike, in the creation of a long-term sustainable sugar industry.”

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