Brazil Steelmaker CSN Agrees to Sell German Unit SWT for €550 Million
Brazil's CSN signed a binding term sheet to sell its German steel subsidiary SWT to Spain's Megasa for €550 million to slash its heavy debt load.
Companhia Siderúrgica Nacional (CSN), one of Brazil's largest industrial conglomerates, has taken a major step to address its mounting debt by agreeing to sell its German long steel subsidiary, Stahlwerk Thüringen (SWT). According to a market filing on October 9, 2026, CSN and its European unit signed a binding term sheet with Bipadosa, the holding company of Spain's Megasa group. The transaction values the German plant at an enterprise value of €550 million, subject to standard adjustments.
The deal establishes a 10-week exclusivity period to finalize contracts and complete the transaction, which remains subject to customary regulatory approvals. Located in Unterwellenborn, Germany, SWT specializes in structural steel sections and has an annual production capacity of 1.1 million metric tons. CSN originally acquired the German mill in 2012 as part of an international expansion strategy to diversify its product portfolio and geographic footprint.
The divestment comes at a critical time for the Brazilian steelmaker, which is grappling with a heavy financial burden. At the end of the second quarter of 2026, CSN's net debt stood at approximately R$ 42 billion, pushing its leverage ratio to a five-year high of 3.49 times net debt to EBITDA. The high leverage has put pressure on the company's capital structure, prompting management to accelerate asset sales to reassure international investors and local creditors alike.
To spearhead this aggressive turnaround, CSN recently reshuffled its top leadership, appointing veteran executive Fábio Schvartsman as CEO, while long-time leader Benjamin Steinbruch returned to focus on the board of directors. The sale of SWT represents the first major milestone under this refreshed strategy, signaling to the market that the company is fully committed to shrinking its balance sheet and focusing on its core domestic operations.
What it touches
This transaction directly impacts CSN's publicly traded assets, including its common shares on the Brazilian B3 exchange (CSNA3) and its American Depositary Receipts on the New York Stock Exchange (SID). Investors view the €550 million divestment as a positive step toward reducing the company's high financial leverage, which has historically weighed heavily on its equity valuation.