The application of the Chinese Huaxin Cement Co. The acquisition of the cement division of the Brazilian company Companhia Siderurgia Nacional S.A. (CSN) is facing resistance from one of the key shareholders of Holcim Ltd. This is reported by foreign media.
Swiss building materials manufacturer Holcim, which owns 42% of Huaxin shares, sold these Brazilian assets to CSN in 2021 and does not intend to support the deal despite Huaxin's interest in the assets. In 2021, Holcim also sold a controlling stake in assets in Zambia to Huaxin Cement.
Huaxin plans to buy out the CSN division for 12 billion reais ($2.4 billion). The Chinese company entered the Brazilian market at the end of 2024 through the acquisition of Embu SA Engenharia e Comercio for $186 million, including four quarries in the state of Sao Paulo.
The bidders for the acquisition of assets also include Votorantim SA, Sinoma International and Polimix Concreto Ltd., which can join the consortium or apply independently. Potential buyers are conducting a comprehensive review and plan to submit offers in early August.
CSN aims to sell the assets of the cement business in order to reduce the debt burden and raise funds. Morgan Stanley acts as an advisor on the transaction. In addition, CSN has engaged Citigroup Inc. and Banco Bradesco SA to sell a significant stake in the infrastructure/logistics division to potential investors, including pension funds and Singapore's GIC wealth fund.
Companhia Siderurgica Nacional S.A. (CSN) is a Brazilian metallurgical and mining company. The company is one of the largest steel producers in Latin America. The headquarters is located in Sao Paulo (Brazil).
Holcim is a Swiss manufacturer of cement and other building materials with headquarters in Zug (Switzerland).
Huaxin Cement is a Chinese company for the production and sale of cement and concrete mixtures. The headquarters is located in Hubei Province (China).
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