China-backed miner MMG expects to secure European approval for its $500-million bid to buy Anglo American’s nickel assets, even as regulators question Beijing’s grip on critical mineral supply chains.
Troy Hey, MMG’s executive general manager of corporate relations, confirmed that European antitrust officials had raised concerns about the company’s Chinese majority ownership, but told the Financial Times the firm is confident the deal will clear because of strong metals demand in Europe.
Brazil’s competition authority has already opened a probe, as Anglo’s nickel operations are located there. Although MMG does not currently operate in Brazil, Europe remains a key destination for the ferronickel produced at Anglo’s mines, which primarily supply stainless steel manufacturers.
Chinese influence
The deal is also drawing scrutiny in the United States. The American Iron and Steel Institute has urged Washington to block the acquisition, arguing it would hand Beijing direct influence over major nickel reserves. Nickel is a critical material for both electric vehicle batteries and stainless steel.
The proposed sale forms part of Anglo American’s (LSE: AAL) wider restructuring. The company spun off its platinum business in May, creating Valterra (JSE: VAL), and in July classified its nickel and steelmaking coal divisions as discontinued operations pending divestment.
Anglo is sharpening its focus on copper, positioning itself to become the world’s fifth-largest producer if its proposed $53 billion merger with Canada’s Teck (TSX: TECK.A TECK.B)(NYSE: TECK), goes ahead.
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