China’s MMG moves to ease EU concerns over $500M Anglo nickel deal

China-backed MMG (HKG: 1208) has pledged to maintain or increase nickel supplies to Europe after the European Commission formally objected to its planned purchase of Anglo American’s (LSE: AAL) Brazilian nickel business for up to $500 million (C$690 million).

The commission sent MMG a Statement of Objections on Wednesday, saying the transaction may restrict competition by allowing the miner to divert low-carbon ferronickel away from Europe and towards affiliated Chinese stainless steel producers.

“Such a diversion of supply, combined with limited alternative supply sources, could adversely affect the price of low-carbon ferronickel in the European Economic Area and have a negative impact on resilience of European stainless steel producers,” the commission said. The area is all 27 EU countries plus Norway, Iceland and Liechtenstein. 

MMG countered that Europe remains the most attractive market for the Brazilian ferronickel and that it has neither an incentive nor plans to redirect supplies to China. The company said it is prepared to provide guarantees to European customers or the Commission and intends to supply Europe with at least the volumes currently provided by Anglo, with the potential to increase them.

Nov. 30

MMG can now respond to the commission, review the case file and request an oral hearing. The regulator has until Nov. 30 to make a final decision.

Anglo agreed in February 2025 to sell its Brazilian nickel business to MMG. The transaction includes the Barro Alto and Codemin ferronickel operations and the undeveloped Jacaré and Morro Sem Boné projects in Pará and Mato Grosso, respectively. 

Brazil’s competition authority also opened a probe into the transaction after a complaint by CoreX Holding, but shelved the investigation last September.

Anglo disputed the commission’s assessment, saying it failed to account for significant growth in ferronickel supply over the past 12 months.

European buyers have access to a broad and growing range of ferronickel suppliers across Latin America, New Caledonia and Asia, Anglo said Wednesday, according to Bloomberg. The transaction would maintain rather than consolidate the number of suppliers serving the market, the Anglo spokesperson added.

Company control

The European Commission’s concern centres partly on MMG’s ownership. The miner is controlled by state-owned China Minmetals, which in turn is controlled by China’s State-owned Assets Supervision and Administration Commission. The EU regulator says the Chinese agency also controls several stainless steel producers, raising concern that ferronickel could be redirected to affiliated buyers.

The acquisition would mark MMG’s entry into nickel production and expand the presence of Chinese-controlled companies in the global industry, which already includes major investments in Indonesia.

The Hong Kong-listed miner operates projects across Australia, Africa and South America. In Brazil, Barro Alto and Codemin produced 39,700 tonnes of nickel contained in ferronickel in 2025, up from 39,400 tonnes a year earlier. 

The Commission’s objections put the availability of low-carbon ferronickel at the centre of its regulatory review.