Huaxin Building Materials Group Co., Ltd. (Huaxin Building Materials) has signed a 10-day exclusivity agreement with Companhia Siderúrgica Nacional (CSN) to negotiate the acquisition of 100 % equity in CSN Cimentos Brasil S.A. (the Target Company). The exclusivity period began on 30 October 2026, following a competitive bidding process approved by Huaxin’s board on 31 July 2026.
The proposed enterprise value for the Target Company is set at BRL 12.70 billion, equivalent to approximately RMB 15.87 billion, using an exchange rate of BRL 0.800348 to RMB 1. During the exclusivity window, both parties aim to finalise and execute definitive transaction documents.
Huaxin Building Materials views the potential acquisition as a strategic step to expand its global production footprint and strengthen its market position in South America’s cement sector. The transaction is not classified as a connected transaction under Hong Kong listing rules.
Key outstanding risks include: • Regulatory approvals: The deal requires clearances from Chinese authorities (NDRC, MOFCOM, SAFE) and Brazilian regulators, notably antitrust approval from CADE. • Negotiation uncertainties: Definitive terms remain under discussion; the transaction may not proceed if agreement is not reached. • Currency exposure: Consideration is denominated in Brazilian reais, leaving final costs vulnerable to exchange-rate fluctuations.
Huaxin Building Materials will issue further disclosures in accordance with Hong Kong Listing Rules as developments arise. Shareholders and potential investors are advised to exercise caution when dealing in the company’s securities.
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