CSR's stake in Australian aluminium giant adds complexity to Saint-Gobain acquisition deal
Australia's largest aluminium smelter, Tomago Aluminum in Newcastle, will be caught up in the play going down by its part-owner.
CSR (Colonial Sugar Refining), an Australian conglomerate, is bought out by French conglomerate Saint-Gobain. The deal will be completed later this year and is said to be worth just under US$3 billion.
CSR has been a minority shareholder in Tomago since its start more than 40 years ago. CSR now holds about 25 per cent stake in Tomago, which it holds through its subsidiary company, GOve Aluminium Finance (GAF). Tomago operates as an "unincorporated joint venture", meaning that the standard rules of majority ownership don't apply. Tomago is operated by the three main owners - Rio Tinto, Hydro, and GAF.
It's highly unlikely that anything will change with the change of ownership. Saint-Gobain is indirectly in aluminium through its insulation and refractory materials sales, but as with CSR, making aluminium is not one of its strengths.
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