Brazil probes Anglo’s $500M nickel sale to China’s MMG

Brazil’s competition authority has launched an investigation into Anglo American’s plan to sell its nickel operations in the country to China’s MMG for up to $500 million.

The probe, first reported by the Financial Times, stems from a complaint filed by CoreX Holding, a global industrial group and direct competitor in the region. Anglo announced in February it would sell its Brazilian nickel mines to MMG, a Hong Kong–listed company controlled by state-owned China Minmetals. The deal is expected to close this quarter.

CADE, the Brazilian watchdog, said it opened an Administrative Procedure for Investigating an Act of Economic Concentration based on the complaint. The agency noted, however, that the probe does not automatically imply the transaction will be blocked.

Anglo declined to comment. CoreX and CADE did not respond to The Northern Miner Group’s requests for further information.

Scrutiny in Brazil follows pressure in the United States, where the American Iron and Steel Institute urged Washington to intervene. The industry body argued that MMG’s acquisition would give China direct influence over sizeable nickel reserves, strengthening its hold on a metal critical for electric vehicle batteries and stainless steel. Anglo’s Brazilian mines produce ferronickel primarily for stainless steel producers, with Europe a key market, according to MMG.

Anglo’s setbacks 

The nickel sale is part of Anglo’s wider divestment strategy after it spun off its platinum business in May, now knowns as Valterra (JSE: VAL). In July, the miner classified its nickel and steelmaking coal assets as discontinued operations, with sales agreed but not completed.

The company’s streamlining plan comes in the wake of a failed takeover bid by BHP (ASX: BHP). But progress has faltered. A $3.8 billion deal to sell its Australian coal portfolio collapsed last month after Peabody Energy (NYSE: BTU) walked away.

Anglo is also weighing options for its loss-making De Beers diamond business, including a possible sale or listing. Demerging this unit, which is the world’s largest diamond miner by value, has shown difficult due to the dire conditions of the global diamond market, weighed down by oversupply, falling demand and the impact of lab-made stones.