HK Stock Market Move | Huaxin Building Materials Group (06655) retreated over 3% from a high, plans to acquire Brazil's second-largest cement producer for RMB10.96 billion

Huaxin Building Materials Group (06655) retreated over 3% from a high, having accumulated gains of over 20% in the previous six trading sessions. As of press time, it fell 3.45% to HK$17.08, with turnover of HK$19.4166 million. On the news front, on the evening of November 8, Huaxin Building Materials Group announced that the company plans to acquire 99.99% equity of CSN CIMENTOS BRASIL S.A. (Companhia Siderrgica Nacional Cimentos Brasil), with an estimated price of approximately BRL9.034 billion (equivalent to approximately RMB10.955 billion). The target company is Brazil's second-largest cement producer. If the transaction is completed, Huaxin Building Materials Group and even Chinese cement enterprises will enter the Brazilian cement market for the first time. The transaction price represents a premium of approximately 34.41% over the target company's book value as of December 31, 2025. After the transaction is completed, CSN Cimentos Brasil will be included in the company's consolidated financial statements. The source of funds for this transaction is the company's own funds and external financing funds such as bank loans and bond issuance, and there is no use of raised funds.