CSN Seeks 15bn Reais Cement Sale

Transaction Overview

CSN (Cia. Siderúrgica Nacional) is pursuing a sale of its entire cement business valued at approximately 15 billion reais (about US$2.9 billion). The earlier plan to retain a minority stake has been abandoned, and the company now intends to divest the whole unit.

Potential Buyers and Bidding Process

Potential bidders identified include a Chinese cement producer, Brazil’s Votorantim Cimentos SA, Italy’s Cementir Holding NV, and Brazilian concrete maker Polimix. Some interested parties may bid individually or form a consortium. CSN expects to receive four bids by the end of the current week. No guarantee exists that any bid will be binding or that the target valuation will be achieved.

Prior Offer

J&F Investimentos SA, controlled by brothers Joesley and Wesley Batista, had previously submitted an offer of 10 billion reais and agreed to assume the cement unit’s liabilities.

Advisory and Rationale

Morgan Stanley is acting as financial adviser to CSN on the transaction. The sale is part of CSN’s broader effort to raise cash and reduce its debt burden.