CSR unlikely to pursue Adbri

CSR unlikely to pursue Adbri
20 May 2004

CSR Ltd has indicated it is unlikely to pursue Adelaide Brighton Ltd after Boral Ltd’s takeover bid for the cement producer was rejected by the consumer watchdog.

CSR chief executive Alec Brennan said any acquisitions had to be a value-adding proposition to be viable.

CSR forecast a softer housing market in Australia and continued low sugar prices for the next 12 months.  Mr Breenan said based on these uncertain factors, its pre-tax profit for the year ending March 2005 was likely to be broadly in line with this year’s result.

CSR reported a net profit of $160.2m for the year to March 31, down 6.7 per cent on last year, largely due to the low sugar price.

Mr Brennan said CSR was always interested in potential acquisitions in the building products area but at the right price.

"Asset prices in the building products area in the last year, because of the strong demand levels, have been high," he said.

"If we can’t find a way of adding something to create value, we are a bit reluctant.

"But at an appropriate time and an appropriate price, we are interested in acquisitions."

CSR has just completed its first year after spinning off its Rinker business, and Mr Brennan yesterday explained that the remaining building products businesses still needed to sort out some issues and become more efficient.

Published under Cement News