Brazilian steelmaker CSN is moving fast on the sale of its cement unit. The company’s chief financial officer told Reuters on Tuesday that binding offers could start coming in within just over a month.
“The binding phase should begin in just over a month, shortly after the receipt of non-binding offers and the selection of the institutions that will advance to the next round,” CFO Marco Rabello said in a written statement. He didn’t disclose prices or name potential buyers.
According to two people familiar with the matter, the cement unit could fetch more than 10 billion reais — roughly $2 billion. The sale is part of CSN’s broader strategy to reduce its debt load.
Who’s in the running
The process has attracted a wide mix of local and international players. On the Brazilian side, both Votorantim and J&F S.A. — the holding company behind meatpacker JBS — are involved in talks. One source said J&F was discussing a potential offer of 10 billion reais.
Votorantim could bid solo or team up with a partner, according to another source. The company declined to comment. J&F also declined.
Chinese firms are also eyeing the asset. Anhui Conch Cement, Huaxin Cement — which acquired a Brazilian company in 2024 — and Sinoma International are all part of the discussions. None of the three responded to comment requests. Their interest was first reported by Brazilian newspaper Valor Econômico and independently confirmed by Reuters.
The process is expected to be highly competitive. Contenders from Italy and Mexico may also enter the race.
Timeline and next steps
Non-binding offers are due by the end of April. Binding offers are expected by the end of June. If all goes well, closing and disbursement could happen by year’s end.
However, the deal will need approval from Brazil’s competition regulator. Rabello noted that the timeline could vary depending on who the buyer ends up being.
CSN has hired Morgan Stanley to advise on the sale of control of CSN Cimentos. For a separate divestiture involving its logistics company, the steelmaker has mandated Bradesco and Citibank.
All sources spoke on condition of anonymity because the information remains confidential.