Brazilian investor Joesley Batista is in talks to acquire the cement division of Cia. Siderúrgica Nacional SA (NYSE:SID), according to people familiar with the discussions. Batista is negotiating directly with Benjamin Steinbruch, who is both the controlling shareholder and chief executive of the embattled steel conglomerate.
Steinbruch has been under intensifying pressure from the company's lenders to divest assets, and Morgan Stanley has been engaged to market the cement subsidiary on CSN's behalf. Sources say Batista is pursuing the cement business through his family's investment vehicle, J&F SA.
Those same sources indicate J&F has also expressed formal interest in CSN's mining unit. That division produced 45.5 million tons of high-quality iron ore last year, a figure cited by the people familiar with the matter.
Other potential buyers are reportedly in the mix. Votorantim SA and China's Huaxin Cement Co. are also in discussions to acquire the cement business, the people said. The participants in these negotiations requested anonymity because the deliberations remain private.
Context and status
The negotiations involve direct engagement between a prospective buyer and the company's top shareholder and CEO. Morgan Stanley's role is limited to marketing the cement unit, while other strategic players have expressed interest. The mining asset within CSN is described by the sources as among the more robust parts of the conglomerate's portfolio.
People involved in the talks asked not to be identified because the discussions are private.
At present there is no public confirmation from the parties involved and no additional operational or financial details have been disclosed by the participants cited. The conversations cover both the cement unit and potential interest in the mining division, but the outcome of those discussions remains unresolved.