National Steel Company moves to slash debt in $2.35 billion cement deal
Brazil's CSN has signed a 10-day exclusivity agreement to sell its cement division to China's Huaxin Building Materials for R$12.7 billion.
Global investors holding emerging market materials or international construction funds are seeing a massive balance-sheet restructuring at one of Latin America's largest industrial conglomerates. Companhia Siderúrgica Nacional, the Brazilian industrial giant known internationally as National Steel Company, is moving to offload its heavy debt load by selling its entire cement business to a Chinese buyer.
On October 30, 2026, National Steel Company announced in a regulatory filing that it has entered into a 10-day exclusivity agreement with China's Huaxin Building Materials Group Co. to negotiate the sale of CSN Cimentos Brasil S.A.. The transaction values the cement unit at an enterprise value of R$12.7 billion (approximately $2.35 billion). Huaxin's proposal emerged as the most competitive offer in a bidding process that began in March 2026, beating out rival bids from European and domestic consortia.
For international investors, the deal is a critical step in addressing the high leverage that has weighed heavily on the Brazilian conglomerate. The company's consolidated net debt stood at R$42.1 billion as of its mid-2026 financial disclosures. By offloading the cement division, National Steel Company expects to reduce its consolidated net debt to approximately R$29.4 billion. If the transaction closes as expected and receives necessary regulatory approvals, this divestment is projected to lower the company's net debt-to-EBITDA leverage ratio from a highly leveraged 3.5x down to a more manageable 2.8x, providing significant relief to its capital structure.
Beijing's Growing Footprint in South American Infrastructure
This transaction highlights a broader trend of Chinese corporations acquiring strategic industrial assets across South America. For Huaxin, a major player listed on the Shanghai and Hong Kong stock exchanges, buying Brazil's second-largest cement producer offers an immediate, dominant footprint in the region's construction supply chain.
The deal is part of a wider divestment push by National Steel Company's controlling shareholder and CEO, Benjamin Steinbruch. Under pressure from major domestic and international creditors, the conglomerate has been forced to pledge assets and accelerate sales to meet short-term debt obligations. Just weeks prior to this agreement, the company also agreed to sell its German steel mill, Stahlwerk Thüringen, to Spain's Megasa for up to €550 million.
While the exclusivity agreement marks a major milestone, the transaction is not yet fully closed. Over the exclusivity window, both companies will work to draft and sign the definitive transfer agreements. Once signed, the multi-billion-dollar deal will still face customary regulatory approvals, including an antitrust review by Brazil's Administrative Council for Economic Defense (CADE).
Global Asset Exposure
National Steel Company is listed on the New York Stock Exchange under the name Companhia Siderúrgica Nacional (NYSE: SID). In addition to direct equity listings, the company's performance and debt restructuring efforts directly influence broad-based emerging market materials exchange-traded funds (ETFs) that hold the asset as part of their Latin American industrial portfolios.
