sugar merger talks called off

Sugar merger talks collapse

Thursday, 14/05/2009

Merger talks between two sugar milling companies in North Queensland have been called off.

The Maryborough Sugar Factory and Tully Sugar had been looking at a merger to consolidate their positions within the industry.

Maryborough Sugar's chief executive Mike Barry says while it made strategic sense, his company couldn't negotiate a suitable price for Tully Sugar.

"We certainly had agreement in terms of concepts moving forward about the need for rationalisation or the opportunity for rationalisation and consolidation in the north," he says.

"We never got down to agreement in terms of value, and for us it's quite important to protect our own shareholder value as well."