The European Commission has sent a formal Statement of Objections to MMG Limited regarding its proposed acquisition of Anglo American’s nickel business, warning that the transaction could restrict competition in the market for low-carbon ferronickel. The regulator expressed concern that the merger could lead to reduced availability and higher costs for European stainless steel producers dependent on this key alloying material.
MMG, a multinational mining company majority-owned by China Minmetals Corporation (CMC), is controlled by the Chinese State-owned Assets Supervision and Administration Commission (SASAC). Because SASAC also controls several stainless steel manufacturers, European antitrust authorities fear that MMG could divert low-carbon ferronickel supplies away from European markets toward affiliated Chinese producers. Given that the target business holds substantial market power and alternative low-carbon supply sources in the European Economic Area are limited, such a strategy could drive up production costs and undermine the resilience of the European steel sector.
The target assets include Anglo American’s integrated Barro Alto operations in Brazil, along with the Codemin facility and two greenfield projects. Following an in-depth Phase II investigation launched in November 2025, the Commission concluded that the market for low-carbon ferronickel remains highly concentrated, magnifying the competitive risks of vertical integration under a state-owned parent entity.
The issuance of a Statement of Objections marks a formal procedural step under the EU Merger Regulation and does not determine the final outcome of the review. MMG now has the opportunity to inspect the case file, submit a written defense, and request an oral hearing before the executive body makes a final decision, which is currently due by November 30, 2026.
