Boliden to Acquire Votorantim's Controlling Stake in Nexa Resources for $1.3 Billion
Key Takeaways
- •Boliden will acquire Votorantim's controlling stake in Nexa Resources in a share-based deal worth $1.3 billion (C$1.8 billion).
- •Nexa is one of the world's largest zinc producers, with mining operations in Peru and Brazil and smelting assets in Brazil.
- •The acquisition significantly expands Boliden's geographic footprint beyond its existing zinc operations in Sweden, Finland, Norway and Ireland.
- •The transaction positions Boliden with a major zinc and silver platform in Latin America.
- •Votorantim will become a shareholder in the combined company, subject to regulatory approvals before the deal closes.
Sweden's Boliden (STO: BOL) has agreed to acquire Brazilian conglomerate Votorantim's controlling stake in Nexa Resources (NYSE: NEXA) in a share-based deal valued at $1.3 billion (C$1.8 billion). The transaction gives the European miner a major zinc and silver platform in Latin America.
Nexa, headquartered in Luxembourg and controlled by Votorantim, is one of the world's largest zinc producers, with mining operations in Peru and Brazil as well as smelting assets in Brazil. For Boliden, which already operates zinc mines and smelters in Sweden, Finland, Norway and Ireland, the deal marks a significant geographic expansion beyond its European base. The acquisition comes as zinc, a key input for galvanizing steel, trades in a market shaped by soft demand from the construction and manufacturing sectors alongside constrained mine supply.
The structure of the deal as a share-based transaction means Votorantim would become a shareholder in the combined company, an arrangement that will need to satisfy regulatory approvals in the relevant jurisdictions before closing.
Source: The Northern Miner (further details are available to subscribers).
