Hong Kong-listed MMG (HKEX:1208) said on Wednesday it will revise proposed remedies to the European Commission in an effort to secure EU antitrust approval for its US$500 million ($727.85 million) bid for Anglo American’s (LSE:AAL) Brazilian nickel business.
“The feedback has been critical but constructive and we are confident our modified proposal will resolve outstanding concerns for both customers and European Commission regulators,” MMG said in a statement obtained by Reuters.
Adjustments to proposed remedies include increasing the volumes of ferronickel supplied to Europe and providing greater surety over contracts and optionality over pricing, a person familiar with the discussions said.
The move followed a combative closed hearing earlier this month where the global mining and metals company and Anglo American defended the deal before European Commission officials and third parties.
The Commission, which is the EU competition enforcer, has warned that MMG could redirect ferronickel supplies away from Europe to China, potentially harming the bloc’s stainless steel producers amid broader EU concerns about dependence on China for critical minerals.
China’s state-owned Minmetals holds 67% of MMG, with the rest owned by investors including BlackRock (NYSE:BLK) and Vanguard.
(Reporting by Melanie Burton and Foo Yun Chee; Editing by Louise Heavens)
Main image: Anglo American
