Brazil’s Votorantim close to selling controlling stake in Nexa Resources

Brazilian conglomerate Votorantim is close to finalizing a deal to sell its controlling stake in zinc producer Nexa Resources for some 7 billion reais ($1.41 billion), local newspaper Estadao reported on Monday, citing sources close to the talks.

Estadao said that Votorantim was in direct negotiations to sell its 64.7% stake to a European company, without naming the potential buyer.

Nexa Resources, one of the world’s largest producers of zinc, has operations in Brazil and Peru.

Votorantim did not immediately reply to a request for comment.

An agreement was not imminent, a source close to the matter told Reuters, but said there was interest in the asset.

In January, Votorantim sold its controlling stake in aluminum producer CBA to Chinalco and Rio Tinto for about 4.7 billion reais.

($1 = 4.9751 reais)

(By Fernando Cardoso and Luciana Magalhaes; Editing by Matthew Lewis)