Boliden Acquires Nexa Resources in $1.31 Billion Zinc Deal

Boliden is set to significantly bolster its global standing in the base metals sector through a strategic acquisition of a controlling stake in Nexa Resources. The Swedish mining giant has agreed to purchase 64.68% of Nexa Resources from Votorantim for an implied consideration of approximately $1.31 billion. This move is poised to expand Boliden's operational footprint, integrating Nexa Resources' substantial zinc and silver assets in Brazil and Peru into its existing European network.

The transaction values Nexa Resources at an equity valuation of roughly $2.03 billion, with an enterprise value reaching $3.67 billion. As part of the deal, Votorantim will receive 0.250 newly issued Boliden shares for each Nexa Resources share it holds. Upon completion, Votorantim is expected to hold approximately 7% of Boliden's total shares and voting rights, marking a significant shift in the ownership structure of both entities.

Following the initial acquisition, Boliden intends to extend a voluntary cash tender offer to acquire the remaining publicly traded shares of Nexa Resources. This comprehensive approach aims to fully integrate Nexa Resources and unlock the full potential of the combined entity. The strategic rationale centers on creating a more geographically diversified mining and smelting powerhouse, bridging operations across Europe and Latin America.

The financial implications for Boliden are substantial. The company anticipates an immediate accretion of over 8% to its earnings per share. For the twelve months concluding June 30, 2026, the combined businesses reported impressive figures, generating approximately SEK 136 billion in revenue and SEK 38 billion in EBITDA. To facilitate the tender offer and potential refinancing needs of Nexa Resources, Boliden has secured a $2 billion bridge financing facility.

Mikael Staffas, President and CEO of Boliden, highlighted the strategic importance of the acquisition. He stated that the deal not only positions Boliden as a premier global zinc provider but also strengthens its overall standing as a key producer of base metals. Furthermore, the acquisition is expected to significantly enhance its precious metals portfolio, particularly through a substantial increase in silver output from concentrates.

The global zinc market, a key focus for this transaction, has seen fluctuating prices driven by supply chain dynamics and demand from industrial applications like galvanizing steel and battery production. Industry analysts note that consolidation in the mining sector, particularly among mid-tier producers, is a continuing trend as companies seek economies of scale and enhanced market share. The integration of Nexa Resources' assets could provide Boliden with a competitive edge in this environment.

Regulatory and shareholder approvals are pending, with the transaction anticipated to close in the first quarter of 2027. This strategic maneuver underscores Boliden's commitment to expanding its global reach and solidifying its position among the world's leading metal producers, leveraging the rich mineral resources of South America.