CSN signs contract to sell cement unit to Chinese company Huaxin for R$ 12.7 billion

São Paulo CSN (Companhia Siderúrgica Nacional) signed a contract to sell CSN Cimentos to the Chinese group Huaxin for R$ 12.7 billion, according to a relevant fact disclosed to investors this Sunday (8). The contract provides for the sale of shares issued by CSN Cimentos to the Chinese company.

The value corresponds to the so-called enterprise value and is subject to adjustments until the deal is concluded, including those related to the unit's net debt and working capital.

"The transaction constitutes an important stage in the company's strategy aimed at reducing its debt and resolving its capital structure", states the relevant fact.

The completion of the sale still depends on the approval of Cade (Administrative Council for Economic Defense), the prior consent of Aneel (National Electric Energy Agency) and regulatory authorizations in China. CSN expects to complete the transaction as soon as these conditions are met.

The negotiation had been discussed for months and gained momentum as one of the first measures taken by the new CEO, Fabio Schvartsman. He took over the position from Benjamin Steinbruch, who had been leading the company for more than two decades.

The sale is part of CSN's effort to raise resources and reduce debt. At the end of July, the company estimated a net loss of between R$1.3 billion and R$1.4 billion in the first half of this year, compared to R$861.9 million in the same period in 2025.

CSN is Brazil's second largest iron ore exporter and controlled the country's second largest cement producer. The company also maintains operations in Germany, Spain, Portugal and the United States.

In August, the company decided to sell its cement business entirely, after abandoning its plan to maintain a minority stake in the unit. At the time, CSN was seeking at least R$15 billion for the business, but reduced the intended value to R$12 billion.

J&F Investimentos, controlled by businessmen Joesley and Wesley Batista, had offered R$10 billion for the unit. Other groups listed as potential buyers were the Brazilian companies Votorantim and Polimix and the Italian Cementir.