Holcim to Sell Business in Brazil to CSN for $1 Billion

Swiss cement maker Holcim AG, formerly known as LafargeHolcim, announced on Friday that it has agreed to sell its business unit in Brazil to steelmaking firm Companhia Siderurgica Nacional (CSN) for an enterprise value of $1.025 billion as the company aims to cut losses due to the persisting pandemic.

In a press release, Holcim announced the divestment of its Brazilian unit to the largest steelmaker in the country.

According to the Swiss cement-making giant, the acquisition deal would include Holcim’s five integrated cement plants, four grinding stations, six aggregates sites and 19 ready-mix concrete facilities in the country.

The company said that the agreement would help it strengthen its balance sheet, which would significantly reduce its debt ratio.

Holcim also said the proceeds from the divestment will be used to invest in its Solutions & Products business after buying Firestone earlier this year.

“This divestment is another step in our transformation to become the global leader in innovative and sustainable building solutions giving us the flexibility to continue investing in attractive growth opportunities,” Holcim CEO Jan Jenisch said in a statement. “We are pleased to have found a responsible buyer with CSN that will develop the Brazilian business over the long term.”

While the company decided to sell its business in Brazil, Holcim said that Latin America will remain as its core strategic growth region.

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