Brazilian billionaire Joesley Batista is negotiating to acquire the cement unit of CSN, the troubled conglomerate led by steel tycoon Benjamin Steinbruch, according to sources familiar with the talks. The discussions come as Steinbruch faces mounting pressure from lenders to divest assets to shore up CSN's finances.

CSN shares recovered slightly after Bloomberg's report, trimming earlier losses. Batista's investment vehicle J&F SA is also eyeing CSN's mining unit, which produced 45.5 million tons of high-quality iron last year. Morgan Stanley is marketing the cement subsidiary, with Votorantim SA and Chinese giant Huaxin Cement Co. also in talks.

The potential deal marks J&F's first foray into the cement sector, expanding beyond its core meatpacking business through JBS NV. For Steinbruch, the talks signal a pivot toward aggressive divestment after years of investor skepticism about CSN's heavy debt load. The conglomerate is currently seeking a $1.5 billion loan from banks who are pushing for asset sales to strengthen the balance sheet.