M&A: Brazil

Brazilian steel giant CSN is closing in on a sale of its cement arm to China’s Huaxin Cement for around R$12 billion, a deal that would hand a Chinese producer control of Brazil’s second-largest cementmaker just as CSN races to pay down debt.

Illustrative photo

The deal details

Companhia Siderúrgica Nacional, the Brazilian steel and mining conglomerate known as CSN, is in the final stretch of selling control of CSN Cimentos, its cement subsidiary. Huaxin Cement, one of China’s largest cement producers, has emerged as the front-runner, with an offer of around R$12 billion, roughly US$2.4 billion, described by people close to the process as currently the most competitive on the table, according to Valor Econômico.

At least three bidders remained in the process just days before the binding-offer deadline, which multiple outlets have placed around August 7, 2026, according to Reuters. CSN has pushed for a higher price, reportedly seeking R$13–14 billion, while bidders have gravitated toward a R$11–13 billion range, still comfortably above the roughly R$10 billion valuation the unit carried when the sale process began, according to reporting from InvestNews.

The asking price is notably steep by another measure too: it exceeds CSN’s own stock-market valuation, which stood at about R$8.08 billion when the figures were reported, according to Seu Dinheiro. CSN hired Morgan Stanley to run the sale process, and the winning bidder would take on a cement business with an expansion pipeline of more than 12 million tonnes in advanced-stage projects, according to InvestNews.

Huaxin’s expansion into Latin America

Huaxin Cement, founded in 1907 in Hubei province and headquartered in Wuhan, is dual-listed, with A-shares on the Shanghai Stock Exchange since 1994 and H-shares on the Hong Kong Stock Exchange since March 2022, according to company filings on HKEXnews. It reported 2024 revenue of about RMB 34.2 billion and net profit of RMB 2.4 billion, per the same filings.

The Chinese company entered Brazil at the end of 2024 by acquiring Embu S.A. Engenharia e Comércio for US$186 million, a deal that included four quarries in São Paulo state producing construction aggregates, according to reporting on the deal. Landing CSN Cimentos would be a far larger step, instantly making Huaxin a major force in Latin America’s largest cement market.

The bid has an unusual complication: Huaxin’s largest shareholder, Switzerland’s Holcim, holds about 42% of the Chinese company and has reportedly signalled it does not support Huaxin advancing to the binding stage of the CSN process, according to Bloomberg. The wrinkle is notable because Holcim itself sold the same Brazilian cement assets, then branded LafargeHolcim Brasil, to CSN back in 2021. No final decision on that internal resistance has been reported.

What Companhia Siderurgica Nacional does. Companhia Siderúrgica Nacional, together with its subsidiaries, operates as an integrated steel producer in Brazil and internationally. It operates through five segments: Steel Industry, Mining, Logistics, Energy, and Cement. The Steel Segment offers produce and sells of flat and long steel. The Mining Segment engages in extraction, processing and marketing of iron…

CSN’s deleveraging story

The cement sale is the centerpiece of a broader divestment plan CSN announced in January 2026, aiming to raise R$15–18 billion combined from the cement unit and a stake sale in its logistics and infrastructure arm, according to InvestNews. That target represents nearly half of CSN’s current net debt.

CSN’s debt load had climbed 11% to roughly US$8 billion by the fourth quarter of 2025, adding urgency to the sale process, according to Global Cement. The company, controlled by the billionaire Steinbruch family, has said proceeds from the cement sale would go directly toward paying down debt.

CSN has also brought in Citigroup and Banco Bradesco to advise on the parallel logistics-stake sale, which reportedly could draw interest from pension funds and Singapore’s sovereign wealth fund GIC, according to a report picked up by AKM. At one point, CSN also considered pledging CSN Cimentos shares as loan collateral for an interim liquidity boost while the sale process played out.

CADE antitrust considerations

Any deal still needs clearance from Brazil’s antitrust authority, CADE, and CSN has said the closing timeline could stretch into the end of 2026 depending on the buyer, according to Global Cement. As a recent entrant to Brazil’s cement sector with only a small aggregates business so far, Huaxin would likely face a lighter antitrust review than a domestic rival.

Votorantim, Brazil’s market leader and one of the other bidders, would probably need a consortium partner to have any chance of winning CADE approval given its existing market share, according to O Globo.

There is a relevant precedent for a smooth review: CADE unconditionally cleared CSN Cimentos’ own 2021 acquisition of LafargeHolcim Brasil, with the regulator’s Tribunal ruling unanimously that existing rivalry in the cement market was sufficient to prevent competitive harm, according to CADE’s own announcement.

What it means for Brazil’s cement market

CSN Cimentos controls roughly one-fifth of Brazil’s cement market, ranking second only to Votorantim, with about 17 million tonnes of annual capacity spread across seven integrated plants in Rio de Janeiro, Minas Gerais, Paraíba and Tocantins states, according to InvestNews reporting. The division posted record 2025 net revenue of R$4.9 billion and adjusted EBITDA of R$1.3 billion, according to Genial Investimentos.

A Huaxin win would mark one of the largest-ever Chinese investments in Brazil’s building-materials sector, instantly elevating a company that only arrived in the country in 2024 to the ranks of its biggest cement producers. It would also be the second time in five years that these specific Brazilian cement assets change hands, after Holcim sold them to CSN in 2021.

Other bidders that had circled the asset at various points include Votorantim, Sinoma International, Polimix Concreto and Italy’s Italcementi, a unit of Germany’s Heidelberg Materials, while Anhui Conch Cement, J&F Investimentos and Suzano Holding all dropped out earlier in the process, largely over price disagreements, according to Reuters reporting carried by Seu Dinheiro. Whoever ultimately wins, the deal will reshape the competitive landscape in a market already dominated by a handful of large players.

Frequently Asked Questions

How much is Huaxin Cement offering for CSN Cimentos?

Huaxin’s offer is valued at around R$12 billion, or roughly US$2.4 billion, and was described as the most competitive bid on the table as of early August 2026, according to Valor Econômico. CSN has pushed for more, seeking R$13–14 billion, according to InvestNews.

Why is CSN selling its cement business?

CSN is trying to cut a heavy debt load, which had climbed to roughly US$8 billion by late 2025, according to Global Cement. The cement sale, alongside a logistics-unit stake sale, is expected to raise R$15–18 billion for debt reduction, according to InvestNews.

When could the CSN Cimentos deal close?

Binding offers are expected around August 7, 2026, with a sale contract targeted for signing in the third quarter, according to Reuters. Final closing still requires CADE antitrust approval and could extend to the end of 2026, according to Global Cement.