MMG (HKEX:1208) faces formal European Union competition objections over its proposed acquisition of Anglo American’s (LSE:AAL) Brazilian nickel business.
The European Commission issued a statement of objections on 16 September, marking a further step in its review of the transaction.
Regulators are concerned MMG could divert low-carbon ferronickel from European customers towards affiliated Chinese stainless steel producers. Combined with limited alternative suppliers, this could increase prices and weaken European producers’ supply security.
The objections are not a final decision to block the acquisition. MMG can respond before the Commission concludes its assessment. Earlier commitments proposed by the company were considered insufficient to address the competition concerns.
Anglo American says it is disappointed with the warning, arguing the transaction would maintain the number of suppliers and that ferronickel supply has expanded over the past year.
MMG executive general manager of corporate relations Troy Hey told Reuters the company is willing to guarantee long-term ferronickel supplies to European customers.
Anglo American agreed to sell the business in February 2025. The package includes the Barro Alto and Codemin ferronickel operations, alongside the Jacaré and Morro Sem Boné development projects.
The sale forms part of Anglo American’s portfolio simplification strategy, focused on copper, premium iron ore, and crop nutrients.
MMG is a Hong Kong-listed mining company producing copper, zinc, and other base metals.
Write to France Pinzon at Mining.com.au
Images: MMG
