China’s Huaxin Building Materials Group has signed a 10-day exclusivity agreement with Companhia Siderúrgica Nacional (CSN), advancing its proposed acquisition of CSN Cimentos Brasil.

The agreement, signed on 30 October 2026 following a competitive negotiation process, values the Brazilian cement producer at BRL12.7bn in enterprise value, equivalent to approximately US$2.33bn at current exchange rates.

According to Huaxin’s filing to the Hong Kong Stock Exchange, the companies aim to agree definitive transaction documents within days. Huaxin’s board approved the submission of a formal bid for CSN’s Brazilian cement assets on 31 July, authorising management to negotiate acquisition agreements within the approved price range.

Huaxin said the proposed acquisition would strengthen its global production footprint and increase its market share and competitiveness in South America’s cement sector.

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However, no definitive acquisition agreement had been signed at the announcement date, and completion remains uncertain. The transaction requires Chinese overseas investment filings and/or approvals, alongside Brazilian regulatory clearance, including antitrust review by the Administrative Council for Economic Defence (CADE).

Huaxin also highlighted the possibility of negotiations failing and warned that exchange rate movements could affect the final acquisition cost, as the consideration is denominated in Brazilian reais.