The European Commission has extended its review of MMG’s (HKEX:1208) proposed acquisition of Anglo American’s (LSE:AAL) Brazilian nickel business for up to US$500 million ($711 million).
The regulator’s decision deadline is now 21 December, compared with 30 November previously, according to its competition case register.
The extension follows MMG offering a legally enforceable guarantee to maintain existing ferronickel supply levels for European stainless steel producers. The company says the arrangement would be independently monitored.
In September, the Commission issued a statement of objections setting out its preliminary view that MMG could redirect low-carbon ferronickel from Europe to affiliated stainless steel producers in China. It says reduced supply could increase European prices and weaken supply-chain resilience.
MMG disputes those concerns and has accused the regulator of overlooking market evidence and customer submissions supporting the acquisition, as previously reported by Mining.com.au.
The statement of objections and extended deadline do not represent a final decision on the acquisition.
The proposed transaction includes the operating Barro Alto and Codemin ferronickel businesses, alongside the undeveloped Jacaré and Morro Sem Boné projects. The operating assets produced 39,400 tonnes of contained nickel in 2024.
MMG says the European review is the final regulatory approval required to complete the acquisition.
MMG is a Hong Kong-listed base metals producer majority-owned by China Minmetals, with operations across Australia, Africa, and South America.
Anglo American is a London- and Johannesburg-listed miner focused on copper, premium iron ore, and crop nutrients.
Write to France Pinzon at Mining.com.au
Main image: Anglo American
