Boliden plans to acquire a 64.7% control of Nexa Resources (NEXA.US) for US$1.31 billion to enter the Latin American mining market

The Zhitong Finance App learned that Boliden AB has signed a final agreement with Votorantim S.A., to acquire all Nexa Resources (NEXA.US) shares held by Votorantim, thereby obtaining a majority vote of about 64.68% of this Latin American zinc and silver producer. According to the terms of the agreement, Votorantim will obtain 0.250 newly issued Boliden shares for each Nexa share it holds, and Votorantim will hold approximately 7.0% of Boliden's shares after the transaction is completed.

Nexa's share valuation corresponding to this share exchange ratio is US$15.29, with a total implied transaction consideration of approximately US$1.31 billion, total implied equity value of approximately US$2,025 billion, and corporate value of approximately US$3,666 billion.

The acquisition will expand Boliden's business footprint to Brazil and Peru, and after the merger, the company will have 12 mining units and 8 smelters across Europe and Latin America.

The transaction is carried out as a full share exchange and will not burden Boliden's balance sheet. It is expected to increase earnings per share by more than 8%, while Boliden's current dividend policy and financial goals remain unchanged.

Votorantim will receive approximately 21.4 million newly issued Boliden shares, with a tiered three-year lockdown arrangement, and will also receive a representative seat on the Boliden board of directors.

After the transaction is settled, Boliden will launch a voluntary offer to acquire Nexa's remaining 35.32% publicly traded shares in cash, and simultaneously launch a mandatory offer for Nexa's subsidiary listed in Peru.

Boliden has been granted a $2 billion fully committed bridge loan to support the proposed acquisition capital requirements and possible debt refinancing arrangements.

The transaction still requires separate approval from Boliden and Nexa shareholders at the Extraordinary General Meeting of Shareholders, as well as relevant competition supervision and foreign direct investment approval.

The deal is expected to close in the first quarter of 2027.