The Swiss-based minerals group, Xstrata, is to bid for control of Asturiana del Zinc. The company said it would be offering 13.5 euros (SFr20) per share for all outstanding shares in the Spanish firm.
The bid values Asturiana at 550 million euros (SFr825 million.
In a statement released on Friday, Xstrata said it planned to submit a takeover proposal to the Spanish authorities for approval on Monday.
The Zug-based group also said it would provide further information on the transaction ahead of the stock market's opening on Monday morning.
Xstrata aims to expand and has sought takeovers in the natural resources industry. Its chief executive, Daniel Sauter, said in an interview earlier this month that the company would take any opportunity offered by an economic slowdown to make acquisitions.
Xstrata, formerly known as Suedelektra Holding, was founded in 1926, and is a diversified natural resources company.
Its activities are divided into three main business divisions: metals and minerals in South Africa; aluminium smelting in the United States; and forestry in Chile.
swissinfo with agencies