Anglo American’s proposed $500 million sale of its Brazilian nickel assets to a unit of Hong Kong-listed MMG Ltd. may face an antitrust review by the European Commission, two people with direct knowledge of the matter said on Wednesday, Reuters reported.
According to the sources, EU regulators rejected the companies’ proposed remedies and are considering whether further review is warranted. The transaction would transfer Anglo American’s Brazilian nickel operations to MMG, raising concerns in Europe about potential effects on the availability of nickel — a material critical for batteries and electric vehicles — amid broader worries about global supply chains and Chinese influence in strategic minerals.
To allay competition concerns, the parties proposed a commitment under which Anglo American would buy ferronickel from MMG for onward resale in Europe for up to ten years, the sources said. The measure was intended to ensure continued access to the metal for European customers. One source added that the European Commission had not sought feedback from rivals and customers as part of a market test of the remedy.
The Commission is scheduled to complete its preliminary review of the transaction on November 4. The EU executive did not immediately respond to a request for comment.
In a joint statement, Anglo American and MMG said they continue to engage with the Commission to secure approval for the deal.
“We continue to work with the European Commission to secure its approval for the deal,” the companies said. “This includes the measures that we have recently put forward to ensure continued access to sustainably produced cupronickel, which we believe represents the most positive outcome for customers. We believe European customers would support Anglo American’s ongoing role as a marketer of cupronickel, while supply competition in Europe would also increase with the addition of MMG as a new supplier.”
The reports underscore heightened regulatory scrutiny of transactions involving critical minerals as Brussels seeks to safeguard supply chains and strategic autonomy in essential raw materials.
