MMG (HKEX:1208) could receive formal objections from European Union regulators this month over its proposed acquisition of the Brazilian nickel business of Anglo American (LSE:AAL), Reuters has reported.
Three people familiar with the matter say the European Commission is preparing a statement of objections outlining competition concerns that MMG would need to address before the transaction can be cleared.
Such a notice would escalate the regulatory review but would not represent a final decision to block the acquisition.
MMG could seek to prevent the notice by offering remedies, although one of the sources reportedly considers this unlikely. The company and the European Commission declined to comment.
Anglo American maintains the transaction does not threaten competition within the European market, citing increased ferronickel supply and customers’ ability to switch suppliers.
“The evidence we’ve provided demonstrates that this transaction poses no competition concerns to the EU market and should be approved unconditionally,” Anglo American says.
The Commission opened an in-depth investigation in November 2025 amid concerns MMG could redirect ferronickel away from Europe, potentially increasing costs for stainless steel producers.
MMG agreed in February 2025 to acquire the business for up to US$500 million ($691.04 million). The transaction includes the Barro Alto and Codemin operations and the Jacaré and Morro Sem Boné development projects.
MMG says all other conditions have been satisfied, with the transaction’s long-stop date extended to 31 October 2026 pending EU clearance.
Anglo American is a global mining company focused on copper, premium iron ore, and crop nutrients.
MMG is a Hong Kong-listed base metals producer with operations in Australia, Peru, the Democratic Republic of the Congo, and Botswana. The acquisition would add nickel to its portfolio and mark its entry into Brazil.
Write to France Pinzon at Mining.com.au
Images: Unsplash
