CSN acquisition in Spain causes shares to fall in Brazil.
Brazilian company acquires Spanish group for R$ 1,2 billion and assumes debts of nearly R$ 1 billion.
247_CSN went on a buying spree. Through its subsidiary CSN Steel, which concentrates all of the company's operational assets in Europe, the Brazilian steelmaker agreed to acquire Cementos Balboa, Corrugados Azpeitia, Corrugados Lasao, Stahlwerk Thüringen (SWT), and Gallardo Sections. All companies are part of the Spanish Grupo Alfonso Gallardo. To acquire the businesses, CSN will disburse €543 million (approximately R$1,2 billion) and assume debts of approximately €403 million (R$922 million). Investors seem to have rejected the acquisition, and CSNA3 shares led the declines on Friday throughout the trading session, falling by almost 2%.
CSN aims to strengthen its cement and long steel segments. Balboa is a cement and clinker producer located in the Extremadura region. Its plant has an installed annual production capacity of 1,4 million tons of cement and 1,1 million tons of clinker. Balboa owns a limestone and slate mine located 5 km from the plant. Azpeitia and Lasao are long steel production units located in the Basque Country. Azpeitia specializes in the production of reinforcing bars and has an installed production capacity of 1,1 million tons of steel per year. Lasao, in turn, is a producer of electro-welded mesh, with an installed annual production capacity of 200.000 tons. Finally, SWT is a long steel producer located in Unterwellenborn, Germany. SWT specializes in the production of profiles and has an installed production capacity of 1,1 million tons of steel per year. CSN's cash flow should not be affected by the acquisitions.