Brazilian investment company Votorantim SA and Huaxin Cement Co. Negotiations are underway to acquire the cement division of the Brazilian conglomerate Cia. Siderúrgica Nacional (CSN). This is reported in the press release of Votorantim.
The value of the deal is estimated at $3 billion.
CSN is in a difficult financial situation due to an 11% increase in debt obligations to 41.2 billion reais ($8 billion) in the fourth quarter of 2025.
CSN has engaged Morgan Stanley as a consultant to evaluate proposed transactions for the sale of a significant stake in the infrastructure and logistics divisions, as well as a controlling stake in the cement business.
CSN expects to conclude deals in the third quarter and use shares of the cement division as collateral for a loan of $1.3–1.5 billion.
From the analysts' point of view, Votorantim will have to form a consortium in order to obtain approval from the Brazilian regulator Cade. At the same time, Votorantim intends to retain assets in markets with a smaller presence, and partners will own stakes in companies with strong market positions. Huaxin probably won't be part of the consortium.
Chinese manufacturer Huaxin Cement entered the Brazilian market at the end of 2024 as part of the acquisition of Embu SA Engenharia e Comercio for $186 million. The company included four quarries in the state of Sao Paulo, focused on the production of aggregates for civil engineering.
Huaxin Cement Co., Ltd. is a Chinese company producing and selling cement and other building materials. The headquarters is located in Wuhan (China).
Votorantim S. A. is a Brazilian investment company in the fields of building materials, finance, energy, aluminum production and infrastructure. The company manages a portfolio of assets in 19 countries with over 61,000 employees. Votorantim includes subsidiaries of Votorantim Cimentos, Nexa and Auren Energia.
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