European Union antitrust regulators have objected to MMG’s (HKEX: 1208) planned acquisition of Anglo American’s (LON: AAL) Brazilian nickel business over concerns the deal could restrict competition and divert supplies away from European customers.
The EU sent the Hong Kong-listed mining company a statement of objections on Wednesday outlining its concerns about the transaction. The Commission (EC) acts as the EU’s competition regulator.
“MMG could divert the target’s low-carbon ferronickel supply towards in particular its affiliated stainless steel producers (controlled by SASAC), and away from European producers,” the Commission said.
The objection puts regulatory scrutiny on MMG’s proposed expansion in nickel as Europe seeks to protect access to critical raw materials and reduce vulnerabilities in strategic supply chains.
China ties
China’s state-owned Assets Supervision and Administration Commission (SASAC) controls China Minmetals Corporation, which in turn controls MMG.
The EC’s concern centres on whether that ownership structure could give affiliated Chinese stainless steel producers preferential access to the Brazilian operation’s low-carbon ferronickel at the expense of European buyers.
The Commission’s move confirms a report earlier this month that EU regulators had competition concerns about the transaction.
Source: https://www.mining.com/eu-objects-to-mmgs-anglo-american-nickel-deal/
