Brazilian steel and iron ore producer CSN has agreed to sell its cement subsidiary, CSN Cimento Brazil, to China’s Huaxin Building Materials Group. The deal has an enterprise value of $2.35 billion and remains subject to customary approvals from authorities in Brazil and China.
The sale is one of CSN’s main options for reducing its financial leverage, currently estimated at 3.49 times annual EBITDA. The company is also seeking proceeds from the sale of its German subsidiary SWT, which is reportedly in the final stages, as well as from the disposal of logistics assets in Brazil.
CSN is also considering bringing in a strategic partner for its Presidente Vargas integrated steel mill in Volta Redonda, in Rio de Janeiro state. One of the plant’s two blast furnaces has been idle for more than a year, and its refurbishment was halted because of a lack of funds.
There are no comments yet.