The European Commission has opened an in-depth investigation under the EU Merger Regulation into the proposed acquisition of Anglo American’s nickel business by MMG. The Commission’s preliminary assessment suggests that the transaction could enable MMG to divert ferronickel supplies away from European markets, potentially leading to higher costs and reduced quality in stainless steel production across the European Union.
MMG Limited is a multinational mining and metals company headquartered in Melbourne, Australia. It specialises in the exploration, development and production of base metals, primarily copper and zinc, and operates mining assets in Australia, Botswana, the Democratic Republic of Congo and Peru. The company is listed on the Hong Kong Stock Exchange and is majority-owned by China Minmetals Corporation, a state-owned enterprise under the supervision of the State-owned Assets Supervision and Administration Commission of the Chinese State Council.
The target of the acquisition consists of Anglo American’s nickel operations in Brazil, which include the Barro Alto and Codemin ferronickel facilities, as well as two undeveloped projects at Jacaré and Morro Sem Boné. The Barro Alto operations comprise an integrated open-pit mine, smelter and refinery that produces low-carbon ferronickel used primarily in stainless steel manufacturing. This alloying material provides the nickel content essential to enhancing steel’s strength, corrosion resistance and durability.
According to the Commission’s preliminary findings, the transaction could allow MMG to redirect the target’s ferronickel output away from European customers to its own downstream operations or to non-European markets. Such a strategy could raise production costs for European stainless steel manufacturers, limit their access to reliable supplies of low-carbon ferronickel and ultimately affect their ability to compete globally. The Commission considers that Anglo American’s nickel business holds significant market power in what is already a highly concentrated market, where European customers have limited alternative sources of supply. Following the acquisition, MMG might therefore have both the ability and the incentive to reduce or degrade supply to European customers, adversely affecting price and quality in a substantial segment of the European stainless steel industry.
To address these competition concerns, MMG offered a set of behavioural commitments prior to the Commission’s deadline for remedies. However, the Commission concluded that these commitments were neither sufficiently clear nor effective, as they did not entail any structural modifications to the business. Consequently, the proposed remedies were not submitted to a market test. A number of stakeholders also expressed doubts about the adequacy of MMG’s proposals.
The Commission has therefore decided to launch an in-depth, or Phase II, investigation to determine whether its initial competition concerns are confirmed. The transaction was notified on 16 September 2025, and the Commission now has 90 working days, until 20 March 2026, to reach a final decision. The opening of the investigation does not prejudge its outcome.
Under the EU Merger Regulation, the Commission is responsible for assessing mergers and acquisitions involving companies whose turnover exceeds specific thresholds, ensuring that such concentrations do not significantly impede effective competition in the European Economic Area. Most notified mergers are cleared after a preliminary review, but when a transaction raises serious doubts about its impact on competition, the Commission opens a Phase II investigation. In addition to the MMG/Anglo American case, two other transactions are currently undergoing in-depth review: Mars’s proposed acquisition of Kellanova and Universal Music Group’s proposed acquisition of Downtown.
Commenting on the decision, Teresa Ribera, Executive Vice-President for Clean, Just and Competitive Transition, emphasised the strategic importance of ferronickel for European industry. “Ferronickel is a key input for European producers to manufacture high-quality, low-emission stainless steel at competitive prices, which is critical for many sectors,” she stated. “Our investigation aims to verify whether this concentration could jeopardise continued and reliable access in Europe to this important resource.”
