The move rebuffs long-held speculation the company would sell to a revised bid from China's Bright Food Group, which lodged a formal offer believed to be between $1.65b and $1.7b.

However, the sale is still subject to approval from the Foreign Review Investment Board and the Overseas Investment Office in New Zealand.

In a statement today, CSR chairman Ian Blackburne said the sale achieved the company's separation agenda.

"We have been working towards the objective for some time and having explored a number of strategic alternatives, the board believes a sale to Wilmar is in the best interests of shareholders," he said.

Sucrogen business will continue as usual at least in the short term, according to Wilmar, as it works with existing management to enhance the business and pursue Asian market opportunities.

Canegrowers chairman Alf Cristaudo said the sugar industry was in a collective state of shock.

“The sale is a surprise to virtually everyone but CSR and Wilmar,” said Mr Cristaudo “Including the market place and especially to Bright Food,” he said.

Wilmar's business activites include oil palm cultivation, edible oils refining, oilseeds crushing, consumer pack edible oils processing and merchandising, specialty fats, oleochemicals and biodiesel manufacturing, and grains processing and merchandising.