Brazil’s steel giant CSN acquires Elizabeth Cimentos for US$214 million
RIO DE JANEIRO, BRAZIL – Companhia Siderúrgica Nacional (CSN), the largest steel industry in Brazil and Latin America and one of the largest in the world, announced Wednesday that its subsidiary CSN Cimentos has reached an agreement to acquire Elizabeth Cimentos, from the Farallon Fund, for R$1.08 billion (US$214 million).
According to the company, the purchase expands CSN Cimentos’ production capacity with operations in the Northeast by 1.3 million tons per year through modern facilities and “significant reserves of high-quality limestone.”
“Relevant operational, logistical, management, and commercial synergies are expected, with room to further develop the product mix and expand the customer base,” CSN said.
CSN Cimentos now has a total capacity of six million tons per year. The closing of the transaction is subject to approval by regulatory authorities, including the antitrust regulator Administrative Council for Economic Defense (Cade).
CSN
Companhia Siderúrgica Nacional (CSN) has about 26,000 employees and is the largest steel industry in Brazil and Latin America and one of the largest in the world.
The main plant, named Usina Presidente Vargas, is located in the city of Volta Redonda, in the central Paraíba river region, in the south of the state of Rio de Janeiro, and has its iron ore and other mineral mines in the Congonhas and Arcos regions, both cities in the state of Minas Gerais, and coal mines in the Siderópolis region in the state of Santa Catarina.
The main plant now produces around 6 million tons of crude steel and over 5 million tons of rolled products per year and is considered one of the most productive in the world.
CSN was created by decree of President Getúlio Vargas during the Estado Novo (1937 – 1946), following a diplomatic agreement, called the Washington Accord, concluded between the Brazilian and U.S. governments.
After privatization, tahe company is now owned by the Steinbruch family. The current president of the company is Benjamin Steinbruch, a prominent Brazilian businessman, banker, and administrator.
With information from Valor
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