Shares of Boliden AB dropped 3.3% to $564.20 on August 28 after the Swedish mining giant unveiled a $1.31 billion all-share deal to take control of Nexa Resources, a zinc and silver producer with mines across Brazil and Peru. The market's cool reception signals investors are weighing a genuine scale advantage against rising balance-sheet risk and integration complexity.
A Buying Spree That's Reshaping the Company. This acquisition follows Boliden's $1.4 billion purchase last year of the Neves-Corvo and Zinkgruvan mines from Lundin Mining, a deal that nearly doubled its zinc concentrate production. Now, Boliden aims to combine its European mining and smelting operations with Nexa's Latin American assets, consolidating a portfolio of 12 mining units and eight smelting units across two regions.
On a combined basis, the two companies generated about SEK 136 billion ($14.3 billion) in revenue and SEK 38 billion in EBITDA (operating profits before accounting charges) over the 12 months ended June 30.
The Price Looks Cheap—But That Creates Its Own Questions. The offer price reflects a 14.2% premium to Nexa's 20-day average price as of July 1, 2026.
BMO noted the valuation looks attractive at first glance, with the implied price representing about 3.2 times Nexa's average forecast 2027–28 enterprise value to EBITDA —a bargain-bin multiple for a mining company. A low purchase price is good for Boliden, but it may face resistance from Nexa's minority shareholders when the tender offer launches.
Debt Is Climbing Fast. Boliden's net debt-to-equity ratio would jump from 24% to roughly 33%, and the company has arranged a $2 billion bridge loan to cover the tender offer for remaining Nexa shares and other obligations. For a company that has historically prized a conservative balance sheet, the leverage increase is notable—especially given that refined zinc output at its Odda smelter dropped 19% in Q1 due to unplanned roaster stoppages and Garpenberg milled volumes were slashed to around 1.5 million tonnes from a prior 3.7 million-tonne target.
Earnings Upside Is Quantified—If Everything Goes Right. Boliden estimates the transaction would immediately boost earnings per share by more than 8%,
with no change to its dividend policy or financial targets. But the deal still needs shareholder and regulatory approval with closing expected in Q1 2027—meaning any earnings uplift remains months away, while existing operational headaches at Odda and Garpenberg are right now.