MMG faces EU antitrust warning over Anglo nickel deal

European Union authorities are set to issue a warning to MMG regarding its planned acquisition of Anglo American's Brazilian nickel business, according to reports from Reuters. The European Commission, the EU's competition watchdog, is expected to publish a statement of objections this month, outlining the issues MMG must address to receive approval.

The potential warning follows the EU's efforts to reduce its dependence on China for critical minerals, such as those used in defense, technology, and renewable energy, amid Beijing's use of export controls on certain mineral supplies.

MMG has agreed to acquire Anglo's Brazilian nickel business, which includes two ferronickel operations and two greenfield projects, in February 2025. The Hong Kong-listed miner is controlled by state-owned China Minmetals. Beyond Europe, Brazil's competition authority has launched an investigation into the transaction following a complaint from CoreX Holding, an industrial group in the region.

The EU contends that the acquisition could allow MMG to divert ferronickel supplies away from Europe, potentially weakening the competitiveness of European stainless steel producers. Anglo American, however, argues that the transaction should be approved without conditions due to an increase in ferronickel supply from various producers and European customers' ability to switch suppliers.

Anglo also claims that EU measures limiting Chinese steel imports prevent Chinese stainless steel from being redirected into the bloc, making it an unsuitable competitive threat.

The case highlights the intersection of competition policy and Europe's efforts to secure critical mineral supply chains as governments scrutinize Chinese involvement in strategic resources. While a formal statement of objections does not directly block the acquisition, it would require MMG to address the Commission's competition concerns as the regulator determines if the deal can proceed.