The mining companies Boliden and Lundin Mining announced yesterday, December 9, a major deal, whereby Boliden buys Lundin Mining's European mines, Zinkgruvan in Sweden and Neves-Corvo in Portugal.
"Although the logic behind the major deal where Lundin Mining sells its mines in Europe to Boliden is clearer for the seller than the buyer, we believe the deal will be good for both companies," writes Affärsvärlden in an analysis on Tuesday.
The price tag landed at 1.3 billion dollars plus a possible additional purchase price of 150 million dollars.
"We have active buy recommendations for both Lundin Mining and Boliden. The transaction does not dramatically change the picture of either company. We maintain both buy recommendations," writes Affärsvärlden in its conclusion.
Boliden AB is Europe's No. 3 zinc and copper producer. The group is also active in metal casting, refining, and recycling. Boliden AB also produces gold, silver and lead. Net sales break down by activity as follows:
- metal production and processing (96%);
- metal extraction (4%): primarily zinc and copper.
At the end of 2024, the group had 5 mines located in Sweden (3), Finland, and Ireland.
Net sales are distributed geographically as follows: Sweden (4%), Finland (10.2%), Nordic countries (0.6%), Germany (19%), the United Kingdom (16.5%), Europe (44.7%), North America (0.1%) and other (4.9%).
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