Anglo American Nickel Sale to MMG Under Brazil’s Regulatory Probe

Brazil’s Regulatory Probe on Anglo American’s Nickel Sale

Brazil’s competition authority, CADE, has opened an investigation into Anglo American’s plan to sell its nickel assets to China’s MMG for $500 million. This probe arises from a complaint by CoreX Holding, a direct competitor in the region. Anglo announced the sale in February, aiming to finalize the transaction this quarter. CADE clarified the investigation does not automatically block the deal but will examine potential market concentration risks. Anglo American has not commented, while CoreX and CADE have remained silent on further details.

The sale concerns Anglo’s Brazilian nickel mines, which primarily produce ferronickel for stainless steel with significant exports to Europe. MMG, a Hong Kong-listed company controlled by state-owned China Minmetals, would gain control of key nickel reserves critical for stainless steel and electric vehicle battery supply chains. Meanwhile, the American Iron and Steel Institute has urged the U.S. government to review the deal, highlighting concerns about China’s growing influence in strategic metals.

Anglo American’s Divestment Strategy and Market Challenges

The nickel sale fits into Anglo American’s broader divestment efforts following its recent spin-off of the platinum business, Valterra. The company classified its nickel and steelmaking coal operations as discontinued in July, aiming to streamline its portfolio. However, Anglo faces setbacks in its restructuring plans. A $3.8 billion deal to sell its Australian coal assets collapsed last month after Peabody Energy withdrew. Additionally, Anglo continues to evaluate options for its diamond business, De Beers, amid a challenging global diamond market marked by oversupply and competition from lab-grown stones.

As Anglo shifts away from non-core assets, the nickel sale remains crucial for its financial repositioning. However, regulatory scrutiny in Brazil and international concerns may affect the transaction’s timeline and outcome.

SuperMetalPrice Commentary:

Anglo American’s nickel sale to MMG highlights increasing global tensions around strategic metal assets. Nickel’s critical role in EV batteries and stainless steel elevates the stakes of such transactions. Brazil’s regulatory probe reflects growing caution over market concentration and geopolitical risks tied to China’s expanding footprint. Meanwhile, Anglo’s broader divestment struggles underscore the challenges faced by legacy miners adapting to evolving commodity markets. Stakeholders should watch for regulatory outcomes that could reshape nickel supply chains and influence global metal pricing dynamics.