Brazilian steelmaker CSN is set to start receiving binding offers for its cement unit in just a few weeks, the company's chief financial officer told Reuters on Tuesday.
"The binding phase should begin in just over a month, shortly after the receipt of non-binding offers and the selection of the institutions that will advance to the next round," Chief Financial Officer Marco Rabello said in a written response.
He did not disclose prices or the names of potential buyers.
CSN could fetch more than 10 billion reais ($2 billion) from the sale of its cement unit, according to two people familiar with the matter.
The talks, the sources said, involve local and international players, including Brazil's Votorantim and J&F S.A., which also controls meatpacker JBS, as well as Chinese companies Anhui Conch Cement, Huaxin Cement, which acquired a Brazilian company in 2024, and Sinoma International.
Non-binding offers are due at the end of April and binding offers should come in by the end of June, said a third source with knowledge of the matter.
The process is expected to be highly competitive and to also include contenders from Italy and Mexico, the source said.
All of the sources declined to be named as the information was confidential.
Votorantim and J&F declined to comment. Anhui Conch, Huaxin, and Sinoma did not respond to requests for comment.
The interest from these Chinese groups was reported earlier in the day by the Brazilian newspaper Valor Economico and independently confirmed by Reuters.
Votorantim could bid for the cement maker solo or with a partner if it decides to pursue the acquisition, according to one of the sources.
The same person said J&F was discussing a potential offer of 10 billion reais for the asset.
CSN is divesting certain assets as part of its efforts to reduce debt.
Rabello said the closing and disbursement of funds related to the cement unit sale could be reached by year-end, though the transaction would need to be approved by the Brazilian competition regulator, and the timeline could vary depending on the buyer.
Earlier this year, the chief financial officer said CSN had hired Morgan Stanley to advise on the sale of control of CSN Cimentos and mandated Bradesco and Citibank to advise on the process involving its logistics company.
(Reporting by Luciana Magalhaes in Sao Paolo and Kane Wu in Hong Kong; Editing by Brad Haynes, Aurora Ellis and Jamie Freed)
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This article was written by Luciana Magalhaes and Kane Wu from Reuters and was legally licensed through the DiveMarketplace by Industry Dive.