CSN Gives Huaxin 10-Day Exclusive Negotiation Period for Cement Unit Sale Valued at 12.7 Billion Reais
Key Facts
Brazil’s Companhia Siderúrgica Nacional said on October 30, 2026, that it had granted China’s Huaxin Building Materials an exclusive 10-day right to negotiate the purchase of shares in its cement unit. In a filing with the U.S. Securities and Exchange Commission, the company said the agreement was intended to negotiate definitive documents; it did not announce completion of the sale. The agreement valued CSN Cimentos at an enterprise value of 12.7 billion Brazilian reais. This measures the value of the business and does not necessarily mean the same amount will represent cash proceeds for the Brazilian company. CSN said it intended to sign the definitive documents "within days" and would inform investors of material developments.
The exclusivity followed a competitive process launched by CSN in March 2026, during which Huaxin, according to the company’s filing, submitted the most attractive offer to acquire the cement unit. The result gives Huaxin priority in negotiations during the exclusivity period, but does not finalize the transfer of ownership. CSN describes itself as Brazil’s second-largest cement producer, with annual production capacity of 16.3 million tons. The potential deal would place the business among Huaxin’s assets if the parties agree on final terms and the transaction receives the required approvals. The filing did not say that negotiations had resulted in a definitive sale agreement.
The negotiations are part of a broader plan CSN announced in January 2026 to divest key assets and reduce debt by between 15 and 18 billion reais. The company said at the time that over the following eight years it aimed to double earnings before interest, taxes, depreciation and amortization and reach a sustainable leverage level of about 1.0 times net debt to earnings before interest, taxes, depreciation and amortization. It said asset stake sales would be subject to customary conditions, including legal, antitrust and regulatory approvals. Debt reduction tied to a cement sale therefore remains part of the divestment program the company announced, while proceeds from any deal will depend on its final terms. The October filing did not specify the cash proceeds CSN expects from selling the unit.
CSN’s second-quarter 2026 results show cement sales of 3.123 million tons, up 1.9% from the first quarter but down 9.9% from the same period in 2025. The company attributed part of the annual decline to scheduled maintenance and a strategy of prioritizing value over sales volume. Across the Brazilian market, cement sales reached 32.9 million tons in the first half of 2026, up 2.3% year over year. In its sector presentation, CSN cited high interest rates and operating cost pressures as risks to the business. These figures provide context for the unit’s performance ahead of the negotiations, but do not by themselves determine the deal’s value or final outcome.
In the market, the company’s shares, listed under the ticker SID, closed at $0.8511 on November 6, 2026, according to EL7 data. Verified figures for the session’s high and low share prices are not available in the approved data. CSN is scheduled to report third-quarter results on November 12, according to a calendar cited by Exame. Those results are the next scheduled milestone for tracking the company’s performance as negotiations over definitive documents continue. Huaxin said any potential acquisition would require regulatory approvals in China and Brazil, while CSN’s broader plan also included legal, competition and regulatory approvals.