The European Commission has issued a statement of objections regarding MMG's (HKG:1208) proposed acquisition of Anglo American's nickel business, stating that the transaction could restrict competition in the low-carbon ferronickel market.
The Commission said it is concerned that MMG could divert low-carbon ferronickel supplies away from European markets following the acquisition, potentially raising costs for stainless steel producers in the European Economic Area.
First announced in February 2025, the deal involves MMG acquiring Anglo American's Nickel Brazil unit for up to $500 million, including $350 million in upfront cash and up to $150 million in contingent payments.
The Commission's preliminary concerns center on the highly concentrated market for low-carbon ferronickel, where the target has substantial market power and European customers have limited alternative sources of supply.
The regulator said MMG could redirect the target's supply toward affiliated stainless steel producers controlled by China's State-owned Assets Supervision and Administration Commission, or SASAC, and away from European producers.
Such a shift could put upward pressure on ferronickel prices and weaken the resilience of European stainless steel producers.
MMG is controlled by China Minmetals Corp., which in turn is controlled by SASAC. The company is a multinational mining and metals producer focused primarily on copper and zinc.
Anglo American's nickel business includes two operating ferronickel facilities and two greenfield development projects in Brazil.
Its principal asset, Barro Alto in Goiás, is an integrated open-pit mine with smelting and refining facilities that produce low-carbon ferronickel primarily for stainless steel manufacturing.
The Commission was notified of the transaction on Sept. 16, 2025, and subsequently opened an in-depth investigation on Nov. 4. The Commission has until Nov. 30, to take a final decision.
