CSN agrees to sell cement unit to China's Huaxin for $2.3B

As of 9:09 p.m. ET, Monday, Nov. 9, 2026

Brazilian steelmaker Companhia Siderúrgica Nacional (CSN) has signed an agreement to sell shares of its cement unit, CSN Cimentos, to China's Huaxin Cement Co., Ltd., in a deal that values the business at 12.7 billion reais on an enterprise-value basis, the company said in a securities filing on Sunday, Nov. 8, Reuters reported.

That is about $2.31 billion, according to a Reuters conversion. Enterprise value includes the unit's debt.

Terms

The agreement was signed on Saturday, Nov. 7, according to Reuters.

Huaxin said in a separate filing that it will pay about 9.03 billion reais for a 99.99% stake in CSN Cimentos, reflecting the agreed enterprise value after adjustments for debt and working capital, Reuters reported. Using Reuters' exchange rate, that is about $1.64 billion.

The deal needs approval from Brazil's antitrust regulator, CADE, prior consent from the power regulator, ANEEL, and applicable Chinese regulatory approvals, CSN said.

Why CSN is selling

CSN said the sale is an important step in its strategy to reduce its debt and rebalance its capital structure. The company, one of Brazil's largest steel and iron ore producers, has been trying to cut debt and raise profits amid a weak steel market and pressure from low-cost imports, mainly from China, Reuters reported.

CSN announced a divestment plan that included the cement business in January, and disclosed the deal's valuation in late October, when it entered 10 days of exclusive talks with Huaxin, according to Reuters. Huaxin made the winning bid in a competitive process that began in March, Reuters said, citing earlier company disclosures.

Huaxin's first move into Brazil

Huaxin said CSN Cimentos accounts for about 21% of Brazil's cement market and that the purchase would be the first entry by a Chinese cement producer into the country, Reuters reported. If completed, the deal would rank among the largest Chinese industrial acquisitions in Brazil's building materials sector, Huaxin said.