European Union regulators have formally challenged MMG’s bid for Anglo American’s nickel operations in Brazil, warning the deal could restrict competition and reroute critical supplies away from European manufacturers.
The European Commission, which oversees competition policy across the bloc, delivered a statement of objections to the Hong Kong-listed miner on Wednesday. The document outlines specific fears about how the acquisition might reshape nickel flows.
At the center of the investigation sits MMG’s ownership structure. China’s State-owned Assets Supervision and Administration Commission, known as SASAC, controls China Minmetals Corporation, which in turn controls MMG. EU officials worry that relationship could funnel low-carbon ferronickel from the Brazilian assets toward Chinese stainless steel producers affiliated with SASAC.
“MMG could divert the target’s low-carbon ferronickel supply towards in particular its affiliated stainless steel producers, and away from European producers,” the Commission stated.
The regulatory pushback lands as Europe scrambles to secure access to critical raw materials and reduce vulnerabilities in strategic supply chains. Nickel plays a key role in stainless steel production and battery manufacturing, making supply security a priority for Brussels.
The transaction, announced last year, would give MMG control of two nickel operations in Brazil: the Barro Alto and Codemin mines. Together they produce roughly 40,000 tonnes of nickel annually.
This week’s formal objection confirms earlier reporting that EU antitrust authorities harbored competition concerns. A statement of objections represents a preliminary step in the Commission’s review process. The company can now respond in writing or request a hearing to argue its case.
As a result, the deal now faces a regulatory gauntlet that could force concessions, divestitures, or outright abandonment. MMG has not yet publicly responded to the Commission’s filing.
The outcome will signal how aggressively Europe intends to police deals involving state-linked buyers from China in the critical minerals sector.
