The Batista brothers are shopping for cement. J&F, the family holding company that controls JBS — the world’s largest meat producer — is in early-stage talks to acquire control of CSN Cimentos, according to people familiar with the negotiations cited by O Estado de S. Paulo. The deal would be valued at a minimum of R$10 billion (~$1.8 billion) including debt.
CSN Cimentos was offered to J&F less than a month ago. The company holds a 21% share of the Brazilian cement market and ranks second only to Votorantim Cimentos. Morgan Stanley and Santander are advising the sale.
Debt is driving the deal
The sale is the centerpiece of a deleveraging plan announced in January by Benjamin Steinbruch, CSN’s controlling shareholder. The steelmaker’s net debt has ballooned to nearly R$40 billion (~$7.1 billion), and its leverage ratio hit 3.14 times EBITDA at the end of September — a level that triggered credit downgrades from S&P, Fitch, and Moody’s since November.
Steinbruch’s plan aims to raise R$15 billion to R$18 billion (~$2.7–3.2 billion) through asset sales, including up to a 30% stake in CSN’s infrastructure division. The cement arm is viewed as the most liquid asset available.
How it would work
The proposed structure would spin CSN Cimentos into a new company, or “NewCo,” carrying a package of CSN’s debt. J&F would inject capital into the entity, diluting Steinbruch to a minority position. Market analysts estimate the cement business is worth eight times its EBITDA of R$1.3 billion (~$230 million), putting the enterprise value between R$10.4 billion and R$11.2 billion (~$1.8–2 billion).
The cement division generates annual revenue of around R$5 billion (~$890 million), roughly 11% of CSN’s total. It operates 13 plants across the Southeast, Northeast, and Central-West regions.
The Batistas keep expanding
For J&F, cement would be the latest in a rapid diversification push. In 2022, the family bought iron ore and manganese assets from Vale for $1.2 billion, creating LHG Mining. Last year they entered fertilizers with a potash mine from Mosaic for $27 million, and hold stakes in energy through Âmbar, including a share of Brazil’s Angra nuclear complex.
Neither J&F nor CSN commented on the report. The companies are targeting a signed agreement by the third or fourth quarter of this year. This is part of The Rio Times’ daily coverage of Brazil affairs and Latin American financial news.
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