EU issues antitrust warning on Anglo American nickel sale

On Wednesday, 16 September, the European Commission issued a formal statement of objections against the planned acquisition of Anglo American's Brazilian nickel business by Hong Kong-listed miner MMG.

Regulators warned that MMG could divert low-carbon ferronickel supplies away from European stainless steel producers toward affiliated entities controlled by China's State-owned Assets Supervision and Administration Commission (Sasac). Sasac controls China Minmetals Corporation, the controlling shareholder of MMG. The Commission noted that remedies previously proposed by MMG during preliminary reviews were insufficient to address supply and price risks in the European Economic Area.

Anglo American expressed disappointment with the antitrust warning. A company spokesperson stated that the transaction would maintain the current number of suppliers and that European regulators ignored market realities, including a significant expansion in ferronickel supply over the past 12 months.

MMG's executive general manager of corporate relations told Reuters on Wednesday that the company is willing to guarantee long-term ferronickel supplies to European customers to alleviate regulatory concerns.