Huaxin Building Materials Group has signed a definitive agreement to acquire a 99.99 per cent interest in Brazil’s CSN Cimentos from Companhia Siderúrgica Nacional (CSN).

The transaction values the business at approximately BRL12.7bn (US$2.31bn) on an enterprise-value basis. Huaxin’s estimated equity payment is BRL9.03bn (US$1.64bn), subject to adjustments for net debt and working capital at completion.

Signed on 7 November and disclosed on 8–9 November, the agreement follows the exclusivity arrangement reported by CemNet on 2 November. Completion remains subject to regulatory approvals in Brazil and China, including clearance from Brazil’s competition authority, CADE.

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CSN Cimentos is Brazil’s second-largest cement producer, with approximately 17Mta of cement capacity across seven integrated operations and six grinding plants. The acquisition would give Huaxin its first cement-manufacturing platform in Brazil, extending its international production network into Latin America’s largest cement market.