Swedish mining and smelting firm Boliden AB is currently engaged in advanced negotiations with Brazilian conglomerate Votorantim S.A. to acquire a controlling interest in Nexa Resources SA. The proposed transaction focuses on Votorantim's approximately 64.7% stake in Nexa, a producer of zinc, copper, and lead with operations in Brazil and Peru. The indicative valuation for this stake is around $1.4 billion, which is approximately 7 billion Brazilian reais.
The potential acquisition is seen as a significant move to create a larger, more geographically diversified mining and smelting group, bridging European processing expertise with substantial Latin American reserves. Boliden operates five smelters and seven mining areas, while Nexa boasts five polymetallic mines and three zinc smelters, including Cajamarquilla in Peru, described as the largest in the Americas. This deal is viewed as a strategic growth opportunity rather than solely for securing additional zinc concentrate supply, given that Nexa is a net buyer of zinc concentrates.
Both Boliden and Nexa have confirmed these ongoing discussions, although they emphasize that no binding agreement has been reached. The deal remains subject to satisfactory due diligence, board approvals, and regulatory clearances. This move highlights a trend of consolidation in the base metals industry, with companies aiming for vertical integration and scale. For Votorantim, selling its substantial holding would free up capital and allow it to reshape its portfolio. Analysts suggest the acquisition could reduce Boliden's risk of a hostile takeover and leverage Nexa's project pipeline in favorable jurisdictions.
