Boliden's Nexa Resources Purchase to Create Global Zinc Leader
Dow Jones
Aug 28
0959 GMT - Boliden's acquisition of Nexa Resources will significantly expand the group, creating a global zinc leader with a top three position in mining and smelting, Deustche Bank analyst Liam Fitzpatrick writes. Swedish miner Boliden has reached an agreement to purchase Votorantim's 65% stake in Nexa and has committed to a voluntary tender offer to purchase the remaining 35% of shares owned by minority shareholders. The deal will increase Boliden's consolidated Ebitda by over 35% and expand the number of operating assets from 12 to 20. The deal is expected to be immediately EPS accretive, reflecting Nexa's low multiple, Fitzpatrick adds. Deutsche Bank rates Boliden at hold with a 620 Swedish kronor target price. Shares rise 1.8% to 576.80 kronor.
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