Brazilian steelmaker Companhia Siderúrgica Nacional has agreed to sell its cement division to China’s Huaxin Building Materials Group in a deal valuing the business at 12.7 billion reais ($2.31 billion).
CSN said on Sunday it had signed the agreement a day earlier to sell CSN Cimentos, its cement arm, to Huaxin. The price is set on an enterprise-value basis, meaning it includes the unit’s existing debt, and Huaxin expects to pay about 9.03 billion reais for a 99.99 per cent stake once the value is adjusted for net debt and working capital.
The deal still needs regulatory clearance, including from CADE, Brazil’s antitrust authority, as well as other Brazilian and Chinese authorities, before it can close.
CSN Cimentos is Brazil’s second-largest cement producer, holding roughly 21 per cent of the country’s cement market, with installed capacity of 16.3 million tonnes a year across 13 plants. For Huaxin, a major Chinese producer based in Hubei province, the purchase would give it its first foothold in Brazil and a bigger presence in South America.
The sale is the centrepiece of CSN’s effort to cut a heavy debt load. The group, which spans steel, mining, logistics and energy, reported consolidated net debt of about 42 billion reais in mid-2026. Offloading the cement division is expected to bring that down to roughly 29.4 billion reais. Its core steel business has faced a softer market and tougher competition from low-cost imports.
Huaxin won the asset after a competitive process CSN launched in March, beating a rival bid from a consortium led by local producer Votorantim Cimentos. CSN granted Huaxin a 10-day exclusivity period on 30 October to negotiate the definitive documents, and Huaxin’s board had authorised a formal bid for the Brazilian cement assets in July.
Sources: Reuters; CSN material fact filing; Finimize.
