Brazilian steelmaker CSN said on Thursday it signed a preliminary deal with Spain’s Grupo Alfonso Gallardo to buy shares in Spanish cement and steel producers for an estimated EUR352m.
CSN said in a securities filing that it had entered exclusive talks with Alfonso Gallardo, also a steelmaker, to buy all of that company’s shares in cement producer Cementos Balbao and steelmakers Corrugados Azpeitia and Corrugados Lasao.
The Brazilian steel company said it could provide an additional EUR30m in working capital as part of the arrangement.
“CSN and the Grupo AG will continue negotiations looking for a convergence of interests in relation to other assets of Grupo AG,” Rio de Janeiro-based CSN said in the statement.
Based in Extremadura, southern Spain, Cementos Balboa has capacity to produce 1.4Mta of cement and 1.1Mta of clinker, CSN said in the statement.