CSN has entered into an exclusive agreement to purchase InterCement’s operations in Brazil and in Argentina, according to two sources close to the matter.

The two parties will have until mid-July to reach a final agreement, according to the first and second sources.

In the meantime, CSN will conduct a due diligence process, the first source said.

Officials at InterCement and CSN did not immediately respond to requests for comment on the matter.

InterCement (C/SD) has reached a standstill agreement with banks holding its domestic debentures to defer principal and interest payments until 8 May, as reported. Lenders are expected to extend it again, according to the first source.

Last year, the cement maker sold its businesses in Mozambique and South Africa. The USD 232m in proceeds it received from the asset sale must be used to repay the domestic bondholders, but the funds are retained, as reported. The company intends to continue retaining the proceeds until a final outcome of the sale process of businesses in Brazil and Argentina and a debt restructuring, as reported.

InterCement’s 2024 bonds last traded at 82.75 on 24 April, according to MarketAxess.