CSN is about to close the purchase of Elizabeth, Farallon’s cement company

Entrepreneur Benjamin Steinbruch, the main shareholder and president of Companhia Siderúrgica Nacional (CSN), is in advanced negotiations to purchase Cimento Elizabeth, which has a factory in the state of Paraíba. The cement plant belongs to the Farallon fund, owned by Daniel Goldberg, which received the asset as payment for debts from the Crispin family, owner of Cerâmica Elizabeth.

According to sources knowledgeable in the cement sector, the value of the deal can vary from US$ 200 million to US$ 250 million – due to the size of the manufacturing unit, asset quality, a market in the Northeast, and degree of competition. A new factory with a capacity of 1 million tons would cost at least $230 million.

A source familiar with the matter has stated that the next three weeks will be decisive for closing the deal. The acquisition is considered strategic for CSN’s cement division, which has plans to go public on B3, the São Paulo stock exchange. The company has already registered its public offering of shares (IPO) with CVM, the capital market agency.

Source: Valor Econômico

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