CSN sells cement division to China's Huaxin for R$ 12.7 billion

Companhia Siderúrgica Nacional (CSN) has signed an agreement to sell its cement division, CSN Cimentos, to the Chinese Huaxin Building Materials Group. The transaction values the business at R$ 12.7 billion, an enterprise value that includes existing debt and is subject to final adjustments regarding net debt and working capital.

Huaxin is expected to pay approximately R$ 9.03 billion for a 99.99% stake in the company. This acquisition marks the first entry of a Chinese cement producer into the Brazilian market and is expected to position Huaxin as the second-largest cement manufacturer in the country, holding roughly 21% of the national market share.

For CSN, the sale is a central component of its strategy to reduce debt and optimize its capital structure. The company has recently engaged in other divestments, including the sale of its steel operations in Germany. The completion of the deal remains subject to customary closing conditions, including antitrust approval from Cade, consent from Aneel, and applicable regulatory authorizations in China.