Brazilian steelmaker CSN has agreed to sell its cement unit, CSN Cimentos, to China's Huaxin Building Materials in a deal valuing the business at 12.7 billion reais, or $2.31 billion. CSN said on Sunday, 8 November 2026, that it had signed the agreement a day earlier, according to Reuters.

The deal is priced on an enterprise-value basis, which includes debt. Finimize reported that Huaxin expects to pay about 9.03 billion reais for a 99.99% stake once the enterprise value is adjusted for net debt and working capital.

Approvals still needed

The sale is not yet closed. The companies said it still needs approvals, including from CADE, Brazil's antitrust regulator, plus other Brazilian and Chinese authorities. That approval stage matters because CSN Cimentos holds roughly 21% of Brazil's cement market, and Huaxin is buying its first foothold in the country.

Cement is heavy and expensive to ship, so competition is often local rather than national. Finimize noted that CADE tends to look closely at specific regions where a buyer could gain too much pricing power, and that regulators can stretch timelines or demand remedies such as selling plants or agreeing to limits on how the business is run.

Why CSN is selling

CSN is trying to cut debt while its core steel business faces a softer market and tougher competition from low-cost imports. The cash payment of roughly 9.03 billion reais would help it reduce that debt burden, while any delay or concession demanded by regulators could change the economics of the deal for both sides.

For Huaxin, which is listed in Shanghai, the purchase would be its first cement business in Brazil and a new production base in South America, strengthening the group's footprint in the region's cement sector.

The agreement follows a 10-day exclusivity deal signed on 30 October, after a competitive bidding process that CSN launched in March 2026. Huaxin submitted the proposal CSN described as the most advantageous, and its board approved submitting a formal bid on 31 July, according to a filing to the Hong Kong Stock Exchange reported by Cemnet. CSN had said in early 2026 that it intended to sell assets, including its cement business and part of its logistics business, as part of efforts to reduce its indebtedness.

The signing of a definitive agreement on 7 November moves the sale a step beyond the exclusivity stage, but completion still depends on the regulatory clearances. The price is set in reais, so exchange-rate movements could also affect what the deal is ultimately worth in dollars. This article is market news, not investment advice.