European Commission investigates MMG’s $500m nickel deal

The European Commission has launched an in-depth investigation into MMG’s proposed $500 million acquisition of Anglo American’s ferronickel assets in Brazil. The deal includes two existing ferronickel plants and two new construction projects.

Regulators are examining whether the transaction could harm competition by reducing the supply of ferronickel to the European stainless steel industry, potentially increasing costs and impacting competitiveness. The investigation occurs amid broader efforts by Brussels to reduce reliance on China for critical metals and minerals.

MMG has urged regulators to base their decision on data rather than geopolitics, stating that independent information shows no incentive to restrict the market. However, industry groups like Eurofer have emphasized the need to protect Europe’s ability to source materials responsibly and prevent single-country dominance over supply chains.