Brazilian steel and iron ore producer CSN said in a statement that it has entered into an exclusivity agreement with China's Huaxin Building Materials Group Co. for the sale of its cement business.
The exclusivity agreement values CSN Cimentos at an enterprise value of about $2.35 billion at current exchange rates, and the deal is expected to close in the coming days.
The agreement, signed on 30 October, has a 10-day term and is intended to pave the way for definitive documents on the sale of shares issued by CSN Cimentos Brasil.
The sale of the cement unit and the planned sale of German subsidiary SWT, announced last week, are CSN's main options for reducing its financial leverage, currently estimated at 3.49 times annual EBITDA.
Other alternatives include selling CSN's logistics assets or even bringing in a strategic partner for the Presidente Vargas integrated steel mill in Volta Redonda, Rio de Janeiro state.
