EU investigation of MMG nickel asset acquisition

The European Commission has initiated an in-depth investigation into MMG’s proposed $500 million acquisition of Anglo American’s ferronickel assets in Brazil. The deal involves two existing plants and two new construction projects. Regulators are assessing whether the transaction might reduce the supply of ferronickel to the European stainless steel industry, potentially increasing costs and impacting competitiveness as Brussels seeks to reduce reliance on China for critical minerals.

MMG has urged regulators to base decisions on data rather than geopolitics, stating that independent information shows no incentive to restrict the market. In response to the ongoing investigation, Anglo American has warned it may close its nickel operations in Brazil if the European Union blocks the sale. MMG, which is controlled by the Chinese state-owned enterprise China Minmetals, has criticized the investigation, arguing that the European Commission has ignored market analyses and characterized the regulator’s use of certain documents as “misleading.”