SAO PAULO - Brazilian steelmaker CSN is continuing negotiations to sell its cement division, with sources close to the process saying the asset could command a price above 10 billion reais.
Those familiar with the matter said the discussions include a mix of local and international suitors. Among the potential buyers named are Brazil’s Votorantim and J&F S.A., the latter of which controls meatpacker JBS. Chinese companies reportedly involved in the interest pool include Anhui Conch Cement, Huaxin Cement - which acquired a Brazilian company in 2024 - and Sinoma International.
One source who requested anonymity because the talks are confidential said J&F was in conversations about a possible bid at roughly 10 billion reais. The same confidential source noted that Votorantim could pursue the acquisition either on its own or in partnership with another investor if it opts to make an offer.
The interest from the Chinese groups was reported earlier in the day by the Brazilian newspaper Valor Econômico and independently confirmed by Reuters.
Strategic context and timing
CSN has been pursuing asset sales to lower its debt load. Chief Financial Officer Marco Rabello has said the company expects to complete the disposal of CSN Cimentos and to sell a stake in its logistics business by the third quarter, potentially generating up to 18 billion reais in proceeds if both transactions close at targeted levels.
To guide the processes, CSN engaged international and domestic financial advisers. Rabello said Morgan Stanley was retained to advise on the sale of control of CSN Cimentos, while Bradesco and Citibank were appointed to advise on the logistics divestment.
What remains uncertain
Sources described discussions as confidential and at stages where bids are not yet finalized. That leaves the ultimate buyer, final price, and the timeline for closing subject to change as negotiations proceed.
CSN, Votorantim, and J&F did not provide comment on the ongoing talks. Anhui Conch, Huaxin, and Sinoma did not respond to requests for comment, according to the parties involved in the reporting.
The outcome of these processes will determine how much of the potential 18 billion reais in proceeds CSN ultimately realizes and how quickly the company can de-leverage through the planned disposals.