CSN Reportedly Seeks $2.9 Billion for Cement Unit, Four Bids Expected

Cia. Siderúrgica Nacional (CSN) is pursuing a valuation of at least 15 billion reais ($2.9 billion) for its cement division and anticipates receiving four binding offers, according to a Bloomberg news report citing people familiar with the matter. The sale is part of the Brazilian conglomerate's ongoing efforts to raise capital and reduce its significant debt load.

Sale Details and Potential Suitors

CSN has reportedly shifted its strategy and now intends to sell the entire cement business, abandoning an earlier plan to retain a minority stake. Morgan Stanley is advising the company on the divestment process, with bids expected to be submitted by the end of this week.

According to the report, the pool of potential bidders includes:

• J&F Investimentos SA, which previously offered 10 billion reais for the unit and agreed to assume its liabilities.
• Brazilian competitor Votorantim Cimentos SA.
• Italy’s Cementir Holding NV.
• Brazilian concrete producer Polimix.
• An unnamed Chinese cement producer.

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Some of the interested parties are reportedly still deciding whether to submit offers independently or as part of a consortium.

Strategic Context

The potential sale is a key component of CSN's deleveraging strategy. The company, controlled by Benjamin Steinbruch, aims to use the proceeds to strengthen its balance sheet by paying down debt.

However, the sources cited in the report cautioned that the process is still in progress. There is no certainty that any of the potential suitors will submit a final binding offer or that CSN will achieve its target valuation.