Boliden (STO:BOL) has reached an agreement with Brazilian investment group Votorantim to acquire its 64.7% stake in zinc miner Nexa Resources (NYSE:NEXA) for approximately US$1.3 billion ($1.8 billion).
Under the all-stock transaction announced on Thursday, Boliden will issue Votorantim 0.25 of a new Boliden share for each Nexa share acquired.
The exchange ratio implies a value of US$15.29 per Nexa share, representing a 6.5% premium to the company’s 20-day volume-weighted average price (VWAP) as of the previous trading day.
The transaction values Votorantim’s stake at around US$1.3 billion and implies a total market value for Nexa of approximately US$2 billion.
Upon completion, Votorantim is expected to become one of Boliden’s largest shareholders with a stake of around 7%.
The deal has been in the works for several weeks, with Boliden confirming in early July that discussions had taken place between the two sides.
Zinc portfolio expands
For Boliden, the acquisition would further cement its position as a major global zinc producer by extending its established European operations into Latin America.
Nexa currently operates five mines and three smelters across Brazil and Peru, producing zinc alongside copper and other metals.
Following completion of the transaction, Boliden’s portfolio would expand to 12 mining units and eight smelter units across Europe and Latin America.
“In addition to positioning Boliden as one of the leading zinc providers in the world, the transaction will reinforce our standing as a globally important base metal producer and bring a healthy addition to our precious metal business,” Boliden President and CEO Mikael Staffas says.
Boliden expects the transaction to close during the first quarter of 2027, subject to shareholder and regulatory approvals.
Boliden says it has also secured a fully committed US$2 billion bridge financing facility to support the transaction, including funding flexibility for a voluntary tender offer for the remaining Nexa shares.
Write to Jackson Chen at Mining.com.au
Image: Nexa Resources
