MMG Pledges Long-Term Ferronickel Supply to Europe as US$500M Anglo Deal Faces EU Review
MMG has offered to maintain or increase supplies of ferronickel to European customers as it seeks to address competition concerns surrounding its proposed US$500 million acquisition of Anglo American’s Brazilian nickel business.
The European Commission has raised concerns that the transaction could reduce the supply of low-carbon ferronickel to European stainless steel producers if MMG redirects production from Brazil to affiliated Asian customers.
MMG, which is majority-owned by China Minmetals, has indicated that it is prepared to provide long-term supply commitments to European customers as part of efforts to secure regulatory approval for the acquisition.
The proposed transaction, announced in 2025, covers Anglo American’s Barro Alto and Codemin nickel operations in Brazil, as well as two development projects.
The assets currently produce about 40,000 tonnes of ferronickel a year, primarily for stainless steel production.
The European Commission issued a Statement of Objections on September 16 following an in-depth investigation.
It said the market for low-carbon ferronickel was highly concentrated and that European buyers had limited alternative sources of supply.
The Commission is concerned that MMG could divert production towards stainless steel producers affiliated with China Minmetals,
potentially reducing supplies available to European manufacturers and increasing their production costs.
MMG has disputed the concerns, arguing that ferronickel is traded globally according to commercial demand and that the acquisition would introduce a new competitor into the market.
The company has also said the Brazilian operations would continue to operate as a standalone business with local management.
Anglo American has similarly argued that the transaction would not reduce competition, pointing to the expansion of global ferronickel supply and European customers’ ability to switch between suppliers.
The European Commission is expected to make a final decision by November 30, 2026. MMG can respond to the objections and propose further remedies before the review is concluded.
The outcome will determine whether MMG can complete the acquisition and expand its nickel portfolio with the Brazilian assets
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