Boliden has completed the acquisition of Somincor (Neves-Corvo) and Zinkgruvan
Boliden has completed its acquisition of Somincor (copper and zinc mine in Portugal) and Zinkgruvan (zinc mine in Sweden) from Lundin Mining for USD 1.40 billion.
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Rhea-AI Summary
Boliden has completed its acquisition of Somincor (copper and zinc mine in Portugal) and Zinkgruvan (zinc mine in Sweden) from Lundin Mining for USD 1.40 billion. The deal, announced on December 9, 2024, includes a base purchase price of USD 1.30 billion and potential contingent payments of up to USD 150 million tied to commodity prices and certain conditions.
The acquisition, effective April 16, 2025, will nearly double Boliden's zinc concentrate production and significantly boost its copper concentrate production, strengthening its position as Europe's leading base metals company. The transaction was financed through a bridge loan and a directed share issue that raised approximately SEK 3.75 billion. The bridge loan will be refinanced through a temporary deviation from Boliden's dividend policy and medium to long-term debt financing.
Positive
- Almost doubles zinc concentrate production capacity
- Significant increase in copper concentrate production
- Strengthens position as leading European base metals company
- Well-invested operations expected to contribute to immediate value creation
Negative
- Substantial debt financing required (USD 1.40 billion acquisition cost)
- Temporary deviation from dividend policy to refinance bridge loan
- Additional debt burden through medium and long-term financing
- Potential dilution from SEK 3.75 billion share issuance
Details
News Market Reaction – BDNNY
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On December 9, 2024, it was announced that Boliden had entered into an agreement with Lundin Mining to acquire the Somincor copper and zinc mine in
"The acquisition consolidates Boliden's position as the leading base metals company in
The acquisition was financed through a bridge loan and a directed share issue that raised approximately
For further information, please contact:
Klas Nilsson
Director Group Communications
+46 70 453 65 88
Klas.Nilsson@boliden.com
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