The European Commission is preparing to issue a formal antitrust warning, known as a statement of objections, to Hong Kong-listed MMG regarding its $500 million bid for Anglo American's Brazilian nickel operations. This move signals increasing EU concern over reliance on China for critical minerals essential for defense, technology, and renewable energy, especially given Beijing's use of export controls on these supplies. The warning highlights the intersection of competition policy and Europe's drive to secure critical mineral supply chains, as governments worldwide scrutinize Chinese involvement in strategic resources.
MMG, which is controlled by state-owned China Minmetals, agreed to acquire Anglo American's Brazilian nickel business in February 2025. The deal includes two ferronickel operations and two greenfield projects. The EU's scrutiny centers on the potential for the transaction to tighten Europe's access to ferronickel, a crucial component in stainless steel, and whether MMG could divert supplies away from Europe. This could weaken the competitiveness of European stainless steel producers by leading to higher costs and lower quality. Anglo American has argued that the deal should be approved unconditionally, citing an expansion in ferronickel supply from various producers and the ability of European customers to switch suppliers.
The transaction has also faced regulatory hurdles beyond Europe. Brazil's competition authority, Cade, launched an investigation following a complaint by CoreX Holding, a competitor in the region. CoreX claimed to have submitted a higher offer of $900 million for the assets, which Anglo American refuted, stating MMG's payment terms offered more guarantees. While Cade has reportedly cleared the deal in Brazil due to MMG's limited prior presence, the European regulatory review remains the primary obstacle, with a more likely solution involving guarantees for ore supply to European steelmakers for several years to prevent immediate supply disruption. The deal illustrates a broader geopolitical shift where governments seek greater control over critical mineral reserves.
