China's Huaxin Cement is preparing a bid of approximately BRL12bn (US$2.4bn) for the cement division of Brazil's Companhia Siderúrgica Nacional (CSN), according to market reports, in a move that would significantly expand the producer's presence in Latin America's largest cement market.
The proposed acquisition would rank among the largest cement-sector transactions in recent years and would give Huaxin control of Brazil's second-largest cement producer. CSN Cimentos currently has an installed cement production capacity of 16.3Mta and operates a nationwide network of 13 cement plants, supported by strategically located terminals and distribution centres across the country.
CSN entered the cement sector in 2009 and has expanded rapidly through both organic growth and acquisitions. The company strengthened its position in 2021 with the acquisition of Elizabeth Cimentos and then transformed its market position in 2022 through the purchase of LafargeHolcim Brasil. That transaction added five integrated cement plants, five grinding units, limestone reserves, an alternative fuels platform, 19 concrete plants and six aggregates units, elevating CSN from a regional producer to the second-largest cement manufacturer in Brazil with a nationwide footprint.
The sale of CSN Cimentos forms part of the parent company's broader efforts to optimise its portfolio and strengthen its balance sheet. Industry sources indicate that several strategic investors have expressed interest in the business, reflecting the attractiveness of the Brazilian cement market and the scale of CSN's asset base.
For Huaxin, the acquisition would represent a major step in its international expansion strategy. The company has steadily increased its overseas presence through acquisitions and investments across Africa, Central Asia and Southeast Asia. A successful purchase of CSN Cimentos would provide Huaxin with an established platform in Brazil, including integrated production capacity, extensive distribution infrastructure and access to one of the world's largest construction materials markets.
The proposed transaction would also mark a notable transfer of assets that were formerly owned by Holcim. CSN acquired the Brazilian LafargeHolcim business in 2022 following a US$1.025bn agreement signed in 2021, with the acquired operations contributing approximately 10.3Mta of cement production capacity.
However, Huaxin's pursuit of the asset may face an unexpected complication. According to a Bloomberg report published on 16 June, Holcim – which remains Huaxin's largest shareholder with an interest of approximately 42 per cent – has opposed the Chinese producer advancing to the next stage of the sale process, citing people familiar with the matter. Bloomberg reported that no final decision had been reached and that discussions regarding the transaction remain ongoing.
