Hong Kong-listed mining company MMG has challenged European Union competition regulators over their assessment of its proposed $500 million acquisition of Anglo American’s Brazilian nickel business, accusing officials of disregarding evidence that the transaction would not disrupt supplies to European manufacturers.
The dispute intensified Thursday following a daylong hearing in which executives from both companies defended the acquisition before European Commission officials, including senior merger regulator Guillaume Loriot, according to Reuters.
MMG executive Troy Hey said the Commission’s concerns about potentially redirecting ferronickel shipments from Europe to China were not supported by the available evidence. He accused regulators of relying on selective portions of documents submitted during the review while overlooking economic assessments and broader market information that challenged their conclusions.
According to Reuters, Hey said regulators had drawn on two incomplete excerpts from a collection of more than 200,000 documents provided by MMG and its principal shareholder. The company maintains that the wider evidence does not support the Commission’s competition concerns.
The disagreement centers on the future availability of ferronickel, a key input in stainless steel manufacturing, and whether MMG’s ownership of Anglo American’s Brazilian assets could reduce supplies available to European industrial customers.
The European Commission raised formal objections to the transaction in September, warning that MMG could have an incentive to redirect ferronickel toward affiliated stainless steel producers outside Europe. Such a shift could increase costs for European manufacturers and weaken their access to an important industrial raw material.
The investigation also reflects heightened European scrutiny of Chinese influence over critical mineral supply chains. MMG is controlled by China Minmetals, which is ultimately under Chinese state ownership.
MMG disputes the premise that its acquisition would undermine European supply security.
Hey told reporters that the Commission had failed to adequately consider changes in market conditions since its detailed investigation began in November 2025. He also questioned its treatment of independent market research commissioned by MMG.
Related: MMG Faces EU Antitrust Warning Over Anglo American Nickel Deal
The company pointed to support from major commodities trading firms Glencore and Trafigura. According to Reuters, Hey said both traders had contacted the Commission to express confidence that MMG would maintain commercial supplies following the acquisition.
The regulatory dispute carries significant consequences for Anglo American, which has been seeking to exit its nickel operations as part of a broader restructuring.
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Anglo American Brazil Chief Operating Officer Ruben Fernandes and Chief Financial Officer Cristina Morgan were expected to warn European regulators that rejecting the transaction could ultimately result in the closure of the Brazilian business, according to prepared statements reviewed by Reuters.
Anglo American has identified MMG as the only credible purchaser after a prolonged effort to divest the assets. Its executives argue that preventing the sale could leave the company with little practical alternative to placing the operations into care and maintenance before eventually shutting them down.
The potential closure adds another dimension to the Commission’s review, placing concerns about European industrial supply alongside the commercial viability of the Brazilian operations.
For Anglo American, the transaction forms part of a larger strategy to simplify its portfolio and concentrate investment in core commodities, particularly copper and iron ore. The company is also pursuing a major combination with Canada’s Teck Resources, another transaction facing scrutiny amid growing geopolitical competition for mineral resources.
Despite its criticism of the EU investigation, MMG has indicated that it remains willing to negotiate measures intended to resolve outstanding competition concerns.
Hey said the company was prepared to address the Commission’s objections, according to Reuters, suggesting that possible concessions could be presented in the coming weeks.
Such measures could become central to whether the acquisition proceeds, particularly as European regulators weigh potential risks to stainless steel producers against the companies’ arguments that existing market conditions and commercial relationships would preserve supply.
The outcome remains uncertain. The Commission’s objections represent a preliminary competition assessment rather than a final prohibition, leaving room for further arguments and potential remedies before a decision.
For MMG and Anglo American, the immediate challenge is persuading regulators that the proposed change in ownership would not weaken Europe’s access to ferronickel — and that blocking the transaction could create a different set of risks for the mining business and its customers.
Source: Reuters.
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