Brazil’s competition authority has launched an investigation into Anglo American’s planned $500 million sale of its nickel operations in the country to a subsidiary of Hong Kong-listed MMG, according to a report by the Financial Times.
The probe, initiated by the Administrative Council for Economic Defense (CADE), follows a complaint filed by CoreX Holding, a global industrial group and direct competitor in the Brazilian market. CADE confirmed that “an Administrative Procedure for Investigating an Act of Economic Concentration was instituted” in response to the complaint.
Regulators emphasized, however, that the opening of a formal inquiry does not necessarily indicate the transaction will be blocked. At this stage, CADE is examining the potential competitive impact of the deal on the nickel sector.
Anglo American, listed in London, declined to comment on the investigation. Neither CADE nor CoreX Holding responded to requests for comment from Reuters.
The deal is part of Anglo American’s sweeping restructuring program, designed to streamline its portfolio amid mounting financial pressures. The company reported a $1.9 billion loss earlier this year and announced a dividend cut. In May, it spun off its platinum business, and in July classified both its nickel and steelmaking coal units as discontinued operations pending divestment.
The nickel sale agreement, announced in February, represents one of several transactions aimed at reducing Anglo American’s exposure to volatile commodities and stabilizing its balance sheet. For MMG, backed by China Minmetals, the acquisition would expand its global footprint in critical minerals at a time of growing demand for nickel in electric vehicle batteries and energy transition technologies.
CADE’s review will determine whether the transaction could harm competition in Brazil’s nickel market, where both Anglo American and CoreX Holding are active players. A final decision is not expected immediately, and the outcome may influence the timeline for completing the deal.
