COFCO increased its share holdings in Australia sugar producer Tully Sugar from 61.25 percent to 99 percent, the Beijing Times reported on Wednesday.

Tully Sugar's second biggest shareholder, Mackay Sugar, which had a 31.5 percent stake in Tully Sugar, announced on Tuesday it had sold all its shares to COFCO.

Mackay Sugar issued an announcement on July 18, 2011, saying that it was the company's intention to take control of Tully Sugar and operate it as part of the Mackay Sugar business. As it had been unsuccessful in securing a controlling stake in Tully Sugar the company believe that it is best for Mackay Sugar shareholders and Tully Sugar to sell its shares.

COFCO began the deal with Tully Sugar on April 16. It costs the company 938 million yuan ($145.15 million) to finally acquire the 99 percent share in Tully Sugar.

Analysts said this deal will expand the planting area of sugar cane and the processing capacity of sugar and lower the cost of China's import of sugar.