Brazil’s CSN close to buying Lafargeholcim’s assets in country

SAO PAULO: Brazilian steelmaker Companhia Siderurgica Nacional’s ( CSN) cement unit is close to acquiring Lafargeholcim Ltd’s assets in the country, two people with knowledge of the mater told Reuters on Thursday.

Other bidders have been told that LafargeHolcim, the world’s largest cement maker, has picked CSN’S bid, the sources said on condition of anonymity as the talks are private. LafargeHolcim is selling the assets to reduce leverage and it analyzed proposals from CSN and local rival Mizu that aimed to acquire its full business in Brazil, the people said. Brazil’s largest cement makers, Votorantim Cimentos SA and Intercement Brasil SA, were only interested in parts of the businesses due to antitrust restrictions, the sources added.

They did not provide the deal value, but sources have previously told Reuters that Lafargeholcim was expecting proceeds of $1 billion to $1.5 billion.

CSN and Lafargeholcim did not immediately reply to requests for comment sent by Reuters outside business hours. CSN has already secured financing from a syndicate of banks led by BNP Paribas, one of the sources added. Brazilian newspaper valour Economico also reported earlier in the day that CSN’S bid had been chosen.

CSN’S bid for Lafargeholcim’s assets are in line with its interest to acquire cement firms in a fragmented Brazil market. Its cement unit in June bought a smaller rival, Elizabeth Cimentos, for $218 million. Its planned IPO was shelved in July due to market conditions, but CSN still expects to list and raise money to fund deals.