The Zhitong Finance App learned that Morgan Stanley released a research report saying that Huaxin Construction Materials (06655) announced the acquisition of 99.99% of the shares of Brazil's National Steel and Cement Company, and the acquisition is expected to bring 17 million tons of cement production capacity per year; the bank indicates that the transaction aims to establish an overseas business platform, and it is expected that the company's capacity utilization, production efficiency, and cost control will all have potential room for improvement.

According to the bank, the company value of the transaction agreement is BRL 12.7 billion (about US$2.309 billion), and the equity is estimated to be about BRL 9.034 billion (approximately US$1,642 billion). Management aims to save about US$80 million in production, supply chain and sales administration expenses and US$45 million in financing costs every year after full business integration.

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