Companhia Siderúrgica Nacional (CSN) advanced its expansion plans in the cement market and added InterCement to the cart. This Thursday (2), the steel company announced an agreement to negotiate exclusively the purchase of 100% of the company’s capital.
According to the statement to the market, the contract was signed last Wednesday (1) and is valid until July 12th. CSN (CSNA3) also highlighted that no binding agreements were made that generate obligations or commitments to carry out the sale.
InterCement, which operates in the international cement and derivatives market, is seeking to sell its operations due to the due date for payment of a US$549 million (R$2.8 billion) loan, scheduled to take place this month.
Furthermore, the company will still need to pay, in May, debentures to banks Itaú, Bradesco and Banco do Brasil. In 2023, the company had a debt of US$1.6 billion (R$8.2 billion).
If CSN acquires the capital of the cement producer, the steel company will control the operations in Brazil and Argentina of the cement producer, which dominates the market in the neighboring country. InterCement is also present in three other countries: South Africa, Mozambique and Egypt.
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Currently, the cement market in Brazil is led by Votorantim Cimentos, which presented the highest financial performance in the company’s history in 2023. According to the latest balance sheet, the producer produced 37 million tons last year.
However, CSN has been signaling its desire to take the crown from Votorantim. The steelmaker already indicated in 2023 that it plans to expand its operations in the cement market.
At an event held in December, the company revealed that it intends to invest up to R$5 billion in organic growth in the sector’s operations in 2024. If carried out, the investment could add 8 million tons per year to cement production, according to CSN.
With the acquisition of InterCement, the steel company can complete the goal established in the previous year. This is because the purchase of the cement producer’s capital has the potential to double CSN’s production, since InterCement is the second largest in the sector in Brazil.
In addition, the company also has a 52.14% stake in Loma Negra, the largest cement company in Argentina, with a market value of approximately US$1 billion (R$5.17 billion).
Other acquisitions
The purchase of 100% of InterCement’s capital will displace another acquisition by CSN that shook the cement market. In 2021, the steel company purchased the Swiss manufacturer LafargeHolcim in Brazil.
The acquisition worth US$5.2 billion generated an increase of 10.3
million tons per year to the production of CSN Cimentos and guaranteed the position of third largest company in the sector for the Brazilian company.
*With information from Terra and Mining News
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