CSN Enters Exclusive Talks to Acquire InterCement's Asset Portfolio

06 May, 2024

CSN Enters Exclusive Talks to Acquire InterCement's Asset Portfolio

CSN, the Brazilian steel company led by Benjamin Steinbruch, is in exclusive negotiations to acquire InterCement’s operations in Brazil and Argentina. The agreement, reached recently, allows CSN until July 12th to finalize the deal. InterCement, burdened by approximately R$9 billion in debt, is seeking relief through this potential acquisition. CSN’s offer of around R$6 billion could alleviate some of InterCement’s financial pressures, though negotiations with creditors would likely follow if the acquisition proceeds.

InterCement's debts, notably with Bradesco, are partially secured by shares of road concessionaire CCR. With a significant portion of its debts due for payment soon, InterCement faces pressure to secure agreements with creditors. CSN sees the acquisition as strategic, aiming to diversify its business beyond commodities like steel and ore. If successful, CSN would gain a majority stake in Loma Negra, a leading cement company in Argentina.

The deal is crucial for both parties, particularly for InterCement's parent company, Mover, which seeks to divest assets to alleviate financial strain. Votorantim Cimentos, the current industry leader in Brazil, and the Chinese company Huaxin were also interested parties, indicating the competitive nature of the cement market. The potential acquisition could reshape the industry landscape and is subject to regulatory approval.