Nexa Resources: Ownership overhang, supportive fundamentals; affirm MW

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Nexa Resources: Ownership overhang, supportive fundamentals; affirm MW

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Nexa Resources

Ownership overhang, supportive

fundamentals; affirm MW

Company Update

Boliden talks create ownership and rating overhang 09 July 2026

Boliden and Nexa confirmed discussions about a potential acquisition of Votorantim’s Global Emerging Markets | Corporate

64.7% stake in Nexa, though no agreement has been reached. Boliden appears to be a Credit

credible strategic buyer and an IG-type credit, though not rated by S&P/Fitch/Moody’s. LatAm | Peru

Metals & MiningRating agencies will therefore need to assess Boliden’s credit profile and, more

importantly, how strategic Nexa would be within the new group before deciding whether Carlos Assumpcao, CFA

to keep the rating benefits the company receives from Votorantim ownership today. Research Analyst

Merrill Lynch (Brazil)

+55 11 2188 4025

carlos.assumpcao@bofa.comNo deal may still pressure ratings

Nexa’s IG ratings at S&P and Fitch benefit from its relationship with Votorantim, and Anne Milne

Research Analyst

S&P has already placed the ratings on negative watch following the confirmed talks. BofAS

Near-term risk is that the deal does not happen as S&P’s language suggests the sale +1 646 855 4096 anne.milne@bofa.com

discussions themselves may indicate Nexa is less important to Votorantim’s long-term GEMS Corporate Credit Rsch

strategy. So, even if Votorantim still owns their stake, an active divestment process BofAS

weakens the “highly strategic subsidiary” argument. Therefore, if the process drags on +1 646 855 4096

or no strong replacement sponsor emerges, S&P could remove at least part of the uplift See Team Page for List of Analysts

in our view.

CoC put is not automatic Exhibit 1: Indicative pricing As of 07/08/2026