MMG faces EU antitrust warning over Anglo nickel deal

MMG’s $500-million purchase of Anglo American’s (LSE: AAL) Brazilian nickel assets is facing another hurdle, with European regulators expected to formally spell out competition concerns about the Chinese-controlled miner’s proposed takeover.

The European Commission is preparing a statement of objections this month, Reuters reported Tuesday, citing three people familiar with the process. Such a notice would give MMG an opportunity to respond or propose concessions before regulators make a final decision.

The scrutiny centres on whether the transaction could tighten Europe’s access to ferronickel, a key stainless-steel feedstock, as the bloc tries to limit its exposure to Chinese-controlled critical mineral supply chains.

Reuters reported that MMG still has the option of proposing concessions before the notice is issued, although one source considered that unlikely.

Supply concerns

MMG agreed in February 2025 to acquire Anglo’s Brazilian nickel business, including two ferronickel operations and two greenfield projects. The Hong Kong-listed miner is controlled by state-owned China Minmetals.

The transaction has faced regulatory scrutiny beyond Europe. Brazil’s competition authority launched an investigation following a complaint by CoreX Holding, an industrial group and competitor in the region.

The EC said in November that the acquisition could give MMG the ability to divert ferronickel supplies away from Europe, potentially weakening the competitiveness of the region’s stainless steel producers.

Anglo has argued the transaction should be approved without conditions, pointing to an expansion in ferronickel supply from several producers and the ability of European customers to switch suppliers.

The company also said EU measures limiting Chinese steel imports mean Chinese stainless steel cannot simply be redirected into the bloc and therefore should not be considered a competitive threat.

Regulatory test

The case puts the transaction at the intersection of competition policy and Europe’s push to secure critical mineral supply chains as governments increasingly scrutinize Chinese involvement in strategic resources.

A formal statement of objections would not itself block the acquisition, but would require MMG to answer the Commission’s competition concerns as the regulator weighs whether the deal can proceed.