Boliden to Buy 65% Nexa Stake in $1.3 Billion Zinc Deal

Swedish miner Boliden agreed to acquire Votorantim's 64.68% stake in NYSE-listed zinc producer Nexa Resources for $1.3 billion, cementing its position among the world's largest zinc producers. The deal, announced Thursday, follows discussions the two companies disclosed earlier this year.

"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 with a large increase to our output of silver in concentrate," Mikael Staffas, chief executive officer of Boliden, said.

Under the terms, Votorantim will receive 0.250x newly issued Boliden shares for each Nexa share it holds, giving the Swedish company control of the Sao Paulo-based miner. Nexa operates a portfolio of zinc mines and smelters across Brazil and Peru and trades on the New York Stock Exchange under the ticker NEXA. The acquisition builds on Boliden's purchase of two European mines from Lundin Mining, extending its zinc footprint across three continents. The premium to Nexa's undisturbed share price was not disclosed.

The transaction, which requires approval from Boliden shareholders and antitrust regulators, is expected to consolidate a global zinc market that has drawn a wave of dealmaking as miners seek scale in a metal central to galvanized steel and renewable-energy infrastructure. Nexa shareholders will receive stock rather than cash, leaving Votorantim with an ongoing stake in the combined group.

A Three-Continent Zinc Footprint

The deal transforms Boliden's geographic profile. Its existing operations span Sweden, Finland, Norway and Ireland, while Nexa adds mines and smelters in Brazil and Peru, two of the world's largest zinc-producing countries. The combination also boosts Boliden's silver output, with Nexa's polymetallic deposits yielding silver as a byproduct of zinc and lead extraction.

For Votorantim, the sale marks a retreat from the mining sector it has controlled since Nexa's listing, freeing capital as the Brazilian conglomerate focuses on its cement, energy and financial businesses. The stock-based consideration ties Votorantim's payout to Boliden's share performance, aligning the two companies through the closing.

Consolidation Reshapes Global Zinc Supply

The deal lands as base-metal producers consolidate to secure supply of metals tied to the energy transition. Zinc, used to galvanize steel against corrosion and in solar mounting structures and wind turbines, has drawn renewed interest from miners and smelters seeking vertical integration. Boliden's combination of European smelting capacity with Nexa's Latin American mines gives it control of the full production chain, from ore to refined metal.

The all-stock structure also carries strategic weight. By paying in shares rather than cash, Boliden preserves liquidity for further acquisitions while giving Votorantim a direct interest in the combined group's performance. If the deal clears regulatory review in Brazil, Peru and the European Union, the combined company would rank among the leading global zinc producers by output, according to the company. A closing date has not yet been disclosed.

Should regulators impose conditions, such as divestitures in overlapping markets, the timeline could stretch beyond the companies' expectations. Either way, the transaction signals that scale, not just cost, is becoming the defining competitive advantage in base metals.

This article is for informational purposes only and does not constitute investment advice.