Brazilian steelmaker Companhia Siderurgica Nacional (CSN) has announced that it has signed a memorandum of understanding (MoU) with Spanish-based Alfonso Gallardo Group for the negotiation and eventual acquisition of stakes in three companies in Spain, i.e., cement maker Cementos Balboa S.A. (Balboa), and steel producers Corrugados Azpeitia, S.L. (Azpeitia) and Corrugados Lasao, S.L.U. (Lasao).
The value of the transactions, which is subject to possible adjustments as a result of due diligence, is estimated at €352 million.
Accordingly, Balboa is a cement and clinker producer located in Spain's Extremadura region, with an installed production capacity of 1.4 million mt per year of cement and 1.1 million mt of clinker. The company owns a limestone and slate mine, located at five kilometers from the plant.
Azpeitia and Lasao are long steel producing plants located in the Basque Country. Azpeitia specializes in the production of rebar and has an installed production capacity of 1.1 million mt per year, while Lasao produces electro-welded mesh and has an installed production capacity of 200,000 mt per year.
The negotiations are expected to be concluded in the first quarter of 2011.