Companhia Siderúrgica Nacional has signed a contract to sell the shares of CSN Cimentos to China’s Huaxin group at an enterprise value of R$12.7 billion, subject to adjustments to closing for the unit’s net debt and working capital, the company said in a material fact announcement on Sunday. CSN controls Brazil’s second-largest cement producer. Closing depends on approval by Brazil’s antitrust authority Cade, prior consent from the energy regulator Aneel, and regulatory authorisations in China, and no completion date was given.
CSN said the sale is an important step in reducing its indebtedness; at the end of July it estimated a first-half net loss of R$1.3 billion to R$1.4 billion, against R$861.9 million a year earlier. The process was one of the first measures of chief executive Fabio Schvartsman, who succeeded Benjamin Steinbruch after more than two decades. CSN decided in August to sell the cement business in full, initially seeking at least R$15 billion before cutting the asking price to R$12 billion; J&F Investimentos had offered R$10 billion, and Votorantim, Polimix and Italy’s Cementir were also cited as potential buyers.