MMG’s $500M Nickel Deal with Anglo American Faces EU Regulatory Hurdles

MMG’s $500M Nickel Deal Under European Union Scrutiny

MMG, backed by China, aims to acquire Anglo American’s nickel assets for $500 million. The deal faces regulatory doubts in the European Union due to concerns about China’s control over critical minerals. Troy Hey, MMG’s executive general manager of corporate relations, said the company is confident it will clear competition checks. Hey emphasized MMG’s position as a new market entrant amid strong European demand for nickel, a key metal in stainless steel and EV batteries.

The acquisition is also under review in Brazil, where Anglo American’s nickel mines operate. Though MMG has no current operations there, Brazil is critical because the nickel products primarily supply European stainless steel manufacturers. The deal aligns with Anglo American’s broader restructuring strategy, which includes spinning off its platinum business and planning divestment of nickel and coal assets.

U.S. Steel Industry Pushes Back on MMG’s Acquisition

Meanwhile, U.S. regulators face pressure from the American Iron and Steel Institute to block the sale. The industry group warns that Chinese ownership could give Beijing significant control over vital nickel reserves. Nickel’s importance spans electric vehicle battery production and stainless steel manufacturing, making this deal highly strategic.

Anglo American’s renewed focus on copper, through a planned $53 billion merger with Canada’s Teck Resources, highlights a strategic pivot. This shift could position Anglo as a leading global copper producer, emphasizing its divestment from nickel and steelmaking coal to streamline operations.

SuperMetalPrice Commentary:

This deal exemplifies the growing geopolitical tensions in the critical minerals sector. While MMG seeks to capitalize on Europe’s nickel demand, regulatory scrutiny reflects broader concerns over supply chain security and Chinese influence. The nickel market’s evolving dynamics will likely drive tighter policies and increased competition among global producers. Investors should monitor regulatory developments closely as they could significantly impact nickel supply and pricing.