CSN to purchase cement from Grupo AG
Cia Siderurgica Nacional SA (CSN) Brazil's third largest steelmaker, signed an agreement with Spain's Grupo AG to pay as much as Eur 382 million ($505 million) for its stakes in cement maker Cementos Balboa SA and steel producers Azpeitia SL and Corrugados Lasao SLU.
The memorandum of understanding may include a Eur 30 million payment as working capital on top of the 352 million valuation for the shares. It expects the deal, subject to adjustments and due diligence, to be concluded in the first quarter of 2011.
"CSN and the Grupo AG will continue negotiations looking for a convergence of interests in relation to other assets of Grupo AG," Rio de Janeiro-based CSN said in the statement.
Based in Extremadura, southern Spain, Cementos Balboa has a capacity to produce 1.4 million metric tonne of cement and 1.1 mt of clinker per year, CSN said in the statement. The statement further stated that Azpeitia and Corrugados Lasao, in the Basque region, are producers of long-rolled steel products.