Shanghai's biggest food company has sweetened the deal for Australia's biggest sugar supplier by 17%.
The Bright Food Group on Thursday raised its offer for the sugar arm of CSR by $A250 million to almost $A1.75 billion.
The ABC reports the new offer could be more appealing to CSR as its demerger plans for its sugar business are held up in court over concerns about asbestos liabilities.
Austock analyst Joe Youseff says the purchase would guarrantee sugar supply to one of China's biggest food companies.
CSR part owns the Chelsea sugar refinery in New Zealand.