China to enter Brazil’s cement market as Huaxin agrees to buy CSN Cimentos
Chinese building materials giant Huaxin Building Materials Group plans to acquire a 99.99 per cent stake in Brazil’s second-largest cement producer, CSN Cimentos, in a landmark deal that will mark China’s first entry into the Brazilian cement market, according to a company statement. The company from central China’s Hubei province, which is listed in both Shanghai and Hong Kong, reached a share…
Chinese cement conglomerate Huaxin Building Materials Group is set to make history by acquiring a 99.99% stake in Brazil's second-largest cement producer, CSN Cimentos. The landmark deal, valued at US$1.64 billion, marks China's initial foray into the Brazilian cement market, according to a company statement.
Huaxin, a building materials giant based in central China's Hubei province, announced the share purchase agreement with CSN Cimentos on Saturday. The deal values CSN Cimentos, the cement division of Brazilian steel giant Companhia Siderurgica Nacional, at approximately US$1.64 billion. CSN Cimentos operates seven kilns and six grinding stations with an annual cement production capacity of 17 million tonnes, representing roughly 21% of Brazil's cement market.
The company holds around 2.2 billion tonnes of limestone reserves and primarily supplies Brazil's northeastern and southeastern regions.
The transaction is not considered a significant asset reorganization and requires regulatory approval in both China and Brazil. Upon completion of the acquisition, CSN Cimentos will become a controlled subsidiary of Huaxin Building Materials, with its financial results consolidated into the group.
Brazilian cement demand has remained stable at over 62 million tonnes since 2022, benefiting from the nation's ongoing economic recovery. Huaxin Building Materials has been focusing on overseas projects and acquisitions for over a decade, and this deal represents a significant step in its strategy to expand its international presence and enter promising emerging markets.
The move aligns with national policies encouraging Chinese listed companies to prioritize core businesses, sector consolidation, and equity incentive programs.
Written by urgent.news from SCMP Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
