National Steel Co. reaches $2.35B deal to sell cement arm to China
Brazil's CSN has signed a 10-day exclusivity agreement to sell its cement unit to China's Huaxin for R$12.7 billion ($2.35 billion) to reduce its heavy debt load.
American retail investors holding international industrial stocks saw a major corporate restructuring take shape on October 30, 2026, as one of Latin America's largest steel and mining conglomerates moved to aggressively slash its heavy debt load through a multi-billion-dollar asset sale.
Companhia Siderúrgica Nacional (CSN), the Brazilian industrial giant known in English as the National Steel Company, filed a Form 6-K with the U.S. Securities and Exchange Commission on October 30, 2026, announcing a 10-day exclusivity agreement to sell its cement division, CSN Cimentos Brasil S.A., to China's Huaxin Building Materials Group. The transaction contemplates an enterprise value of R$ 12.7 billion, equivalent to approximately $2.35 billion.
The divestment is a critical step in CSN's strategy to address its high leverage. The conglomerate, which has operations spanning steel, mining, logistics, and energy, reported a massive net debt of R$ 42 billion as of the second quarter of 2026. This debt level represented an 18.2% increase compared to the same period in the previous year, pushing its net debt-to-EBITDA ratio to a strained 3.49 times.
Creditor Pressure and Global Ambitions
The sale follows a competitive bidding process launched in March 2026, where Huaxin ultimately submitted the most advantageous proposal, beating out local competitors like a consortium led by Votorantim Cimentos. For CSN, the deal is a direct response to mounting pressure from domestic and international creditor banks. According to banking sources reported by BNamericas on October 30, 2026, these financial institutions recently conditioned new short-term credit lines on the requirement that CSN present substantial collateral and execute major asset sales.
This transaction marks CSN's second major international divestment in October 2026, following its agreement earlier in the month to sell its German steel mill, Stahlwerk Thüringen, to Spain's Megasa for up to 550 million euros ($615.5 million). For China's Huaxin, the acquisition represents a major step forward in its overseas expansion, securing a robust foothold in South America's largest economy.
The deal highlights a broader trend in Brazil's industrial center, where Chinese companies have consistently expanded their footprint. While the exclusivity agreement sets the stage for definitive documents to be signed within days, both companies cautioned that the final transaction remains subject to standard regulatory approvals and closing conditions.
About CSN's U.S. Listing
Companhia Siderúrgica Nacional is listed in New York as National Steel Company. CSN ADRs are tradeable through most U.S. brokerage accounts, and the company is a component of several Latin American and emerging market ETFs.
