Brazil's Votorantim Plans to Sell Nexa Control to Boliden for $1.4 Billion

en.Wedoany.com Reported - Boliden (STO: BOL) is in talks with Brazilian investment group Votorantim to acquire a majority stake in zinc miner Nexa Resources (NYSE: NEXA).

Boliden and Nexa confirmed the ongoing negotiations in statements released late Thursday, following market speculation. The two companies did not provide further details and cautioned that it remains uncertain whether the talks will result in a deal.

Following the news, Nexa's shares rose 2.8% in after-hours trading, bringing its market capitalization to approximately $1.8 billion.

Reports earlier this year indicated that Votorantim was close to selling its controlling stake in Nexa. In April, the group told local newspaper Estadao that the offer for its 64.7% stake was around 7 billion reais ($1.4 billion). Prior to this, the group had sold aluminum producer CBA to Chinalco and Rio Tinto for approximately 4.7 billion reais.

A deal with Votorantim would further strengthen and expand Boliden's exposure to base metals. Nexa is one of the world's leading zinc producers, operating five polymetallic mines and three smelters in Brazil and Peru.