Boliden Acquires Nexa Resources Stake for $1.3 Billion

Swedish mining group Boliden AB has entered into an agreement to acquire a controlling stake in Nexa Resources SA from Votorantim SA. This significant transaction, valued at approximately $1.3 billion, will see Boliden take ownership of a substantial portion of Nexa Resources, a company primarily focused on the production of zinc and silver. The acquisition is poised to significantly expand Boliden's operational footprint, extending its reach into the key mining regions of Brazil and Peru. Nexa Resources operates mines and metallurgical facilities across South America, with a particular emphasis on its operations in Peru and Brazil, where it holds significant reserves and production capacity for zinc. The company is also a notable producer of silver, a valuable byproduct of its zinc mining activities. Boliden, headquartered in Stockholm, Sweden, is a metals and mining company with a long history in the industry. Its core business involves the exploration, extraction, and processing of metals, with a focus on zinc, copper, and nickel. The company operates mines and smelters across several European countries. The proposed deal involves Boliden acquiring Votorantim SA's approximately 41.8% stake in Nexa Resources. Votorantim SA, a Brazilian conglomerate, has been a significant shareholder in Nexa Resources. The acquisition is subject to customary closing conditions, including regulatory approvals and the tender of shares from other shareholders. This strategic move by Boliden is expected to create a more integrated and geographically diversified zinc and copper producer. By gaining control of Nexa Resources, Boliden aims to leverage synergies, optimize operational efficiencies, and enhance its market position in the global metals sector. The expanded presence in Brazil and Peru is particularly noteworthy, as these countries are rich in mineral resources and represent important markets for mining operations. The transaction underscores Boliden's commitment to growth and its strategy of consolidating its position in key commodity markets. The acquisition of Nexa Resources is anticipated to contribute positively to Boliden's earnings and cash flow, further strengthening its financial profile. The deal is expected to be completed in the second half of 2024, pending the satisfaction of all conditions precedent. This marks a substantial step in Boliden's ongoing development and its ambition to be a leading European metals producer with a global reach.