Cia. Siderúrgica Nacional is seeking a minimum of 15 billion reais for its cement operations and expects to draw four bids as it advances a process to divest the entire business. The company has altered its prior approach and is now aiming for a full sale rather than retaining a minority stake.
The change in strategy follows an earlier proposal from J&F Investimentos SA, the firm controlled by Joesley and Wesley Batista, which had offered 10 billion reais and agreed to take on the unit's liabilities, according to people familiar with the matter. CSN has raised its asking price to at least 15 billion reais as it pursues a new outcome.
Sources indicate a mix of domestic and international players are among those considering bids. Potential suitors named by people with knowledge of the process include a Chinese cement producer, Brazil's Votorantim Cimentos SA, Italy's Cementir Holding NV and Brazilian concrete maker Polimix. Some interested parties are assessing whether to submit offers independently or to join forces in a consortium.
CSN expects to receive bids by the end of this week, according to the people cited. The company has engaged Morgan Stanley to advise on the sale as it looks to bolster liquidity and reduce its debt load.
Process status and uncertainties
The sale remains an active process. Insiders stress there is no certainty that any party will present a binding offer or that CSN will obtain the 15 billion reais valuation it is targeting. The company is proceeding with the sale as part of a broader effort to raise cash and deleverage its balance sheet.
Implications for stakeholders
If completed, the transaction would transfer ownership of CSN's cement operations to a buyer or group of buyers, with implications for the construction materials sector in Brazil and for CSN's overall financial position. However, the outcome is not assured and depends on whether bidders meet CSN's valuation and other conditions set by the seller.
Next steps
- CSN awaits formal bids by the end of the week.
- Interested parties are still deciding between solo bids or consortium approaches.
- Morgan Stanley is advising on the process.