DSM denies rumours over Gist sale

Dutch chemicals group Royal DSM has denied being in talks with Australian food group Burns Philp over the purchase of its Gist Brocades unit, IndustrySearch.com reports.

Wire services reported that the Dutch group said it was not talking to parties about selling Gist Brocades. On Monday the Sydney Morning Herald​ reported Burns Philp was considering a $400 million (€223m) bid for Gist Brocades, a deal which would make it Europe's largest yeast producer. Last week, Burns Philp booked a 65 per cent lift in annual net profit.

The global food ingredients group recently reported net profit for 2001/02 of $146.2 million, up from $88.5 million previously.

Managing director and chief executive Tom Degnan said Burns Philp's strong financial performance emphasised the underlying strength and diversity of the group's global yeast business.

"The recent history of the group's business indicates an ongoing improvement in profitability and a return to generating taxable profits,"​ Degnan said last week.