Brazilian conglomerate Votorantim is in advanced negotiations to sell its 64.7% controlling stake in zinc producer Nexa Resources to an unnamed European buyer for approximately 7 billion Brazilian reais, or about $1.41 billion using the current exchange rate of 4.9751 reais per dollar. The deal was reported by the local newspaper Estadao on April 20, 2026.
Nexa Resources is one of the world’s largest zinc producers, operating mines and smelting facilities in Brazil and Peru. In 2025 the company posted a net income of $223 million, a turnaround from a net loss in 2024, and an adjusted EBITDA of $772 million, up 8% year‑over‑year. The transaction value implies an enterprise valuation of roughly $2.18 billion, placing Nexa in the upper tier of global zinc producers.
Votorantim’s decision to divest its stake aligns with a broader portfolio‑optimization strategy that has already seen the sale of its controlling interest in aluminum producer CBA earlier in 2026. By reducing exposure to commodity‑price volatility, the conglomerate aims to redeploy capital into less cyclical assets. The European buyer’s interest reflects a growing trend among European companies to secure direct control over critical mineral supply chains for strategic materials security.
Investors have reacted positively to the sale rumors, viewing the transaction as a strategic move that could enhance supply‑chain resilience for zinc, a key component in steel galvanization. The market’s enthusiasm underscores the perceived value of a stable, long‑term ownership structure for a leading zinc producer.
Under new ownership, Nexa may experience changes in governance and capital structure, and the buyer could introduce operational efficiencies, technology upgrades, and stronger environmental compliance initiatives. For Votorantim, the proceeds from the sale could support its shift toward lower‑volatility businesses and strengthen its balance sheet.
The deal remains in advanced negotiations, and no definitive agreement has been reached as of the latest reporting. The transaction’s completion will depend on regulatory approvals and final contractual terms.
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