Brazilian steel and iron ore producer CSN and China's Huaxin Building Materials Group Co. have signed a contract for the Chinese company to acquire CSN Cimento Brazil.
The deal remains subject to customary approval by Brazilian and Chinese authorities.
The transaction, valued at an enterprise value equivalent to $2.35 billion, is one of CSN's main options for reducing its financial leverage, currently estimated at 3.49 times annual EBITDA.
The sale of CSN's German subsidiary SWT, reportedly in its final stages, and the sale of logistics assets in Brazil are further options for putting the company's finances back on track.
CSN is also considering bringing in a strategic partner for the Presidente Vargas integrated steel mill in Volta Redonda, Rio de Janeiro state.
The plant has had one of its two blast furnaces idled for more than a year, with its revamp halted due to a lack of funds to complete the work.
