CSN to sell cement unit to Chinese buyer for $2.31

Brazilian steelmaker Companhia Siderúrgica Nacional (CSN) signed a share purchase agreement on November 7 to sell its cement business, CSN Cimentos, to Chinese building materials company Huaxin Building Materials Group. The firm announced the deal the following day through a regulatory filing, valuing the transaction at BRL 12.7 billion, or approximately USD 2.31 billion. This divestment is part of CSN’s broader strategy to reduce indebtedness and improve its capital structure.

CSN pursued the sale through a competitive process initiated in March 2026, with Huaxin emerging as the preferred bidder after the two companies entered an exclusivity agreement in October. The agreed enterprise value of BRL 12.7 billion is subject to customary adjustments, including those relating to CSN Cimentos’ net debt and working capital at the time of completion. In a separate disclosure, Huaxin stated that it would acquire a 99.99 per cent stake in the Brazilian cement business for approximately BRL 9.03 billion, equivalent to around USD 1.64 billion. The difference between the enterprise value and the share consideration reflects the company’s financial obligations and other transaction adjustments.

Completion of the sale is contingent upon the fulfilment of customary conditions precedent, including approval from Brazil’s Administrative Council for Economic Defence (CADE) and prior consent from the National Electric Energy Agency (ANEEL). The agreement also requires regulatory approvals in China. The buyer’s disclosures list the company’s assets as seven kilns and six grinding stations, along with an annual production capacity of approximately 17 million tonnes. Once these conditions are met, Huaxin will gain a substantial presence in the country’s cement industry, where CSN Cimentos is the country’s second-largest producer.

The deal gives Huaxin a foothold in South America’s construction materials market, a region the company has been seeking to expand. For CSN, freeing capital from these operations supports efforts to lower debt while allowing the company to focus on its core steel businesses. Regulatory clearances remain the final hurdle before the transaction closes. CSN Cimentos is the country’s second-largest cement producer, with an annual production capacity of approximately 17 million tonnes and an estimated market share of around 21 per cent.