Brazilian steel and iron ore producer CSN has signed an exclusivity agreement with China’s Huaxin Building Materials Group Co. for the sale of its cement business. CSN Cimentos is valued at about $2.35 billion at current exchange rates.
Signed on October 30, the agreement runs for 10 days and is intended to pave the way for definitive documents on the sale of shares in CSN Cimentos Brasil. CSN said the deal is expected to close in the coming days.
The sale of the cement unit and the planned sale of German subsidiary SWT, announced last week, are CSN’s main options for reducing its financial leverage, currently estimated at 3.49 times annual EBITDA.
Other options under consideration include selling CSN’s logistics assets or bringing in a strategic partner for the Presidente Vargas steelworks in Volta Redonda, in Rio de Janeiro state.
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