Australian mining company MMG, backed by China Minmetals Corporation (CMC), is reportedly seeking approval from EU authorities for its $500m (A$750.94m) acquisition of Anglo American’s nickel assets.
According to a Financial Times report, the company is confident of receiving the approval despite existing concerns surrounding China’s influence in critical mineral supply chains.
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In February, the deal was agreed between Anglo American and MMG, which is two-thirds owned by Minmetals, a Chinese state-owned entity.
The proposed partnership is a key component of the restructuring strategy implemented by London-listed Anglo American following its successful defence against a takeover bid from rival BHP.
Troy Hey, MMG’s corporate relations executive general manager, acknowledged that European antitrust officials have raised concerns regarding the group’s Chinese majority ownership.
However, he expressed confidence in obtaining the necessary clearance, citing the company’s current absence from the ferronickel market and its lack of operations in Brazil, where Anglo American’s assets are located, as factors likely to ease regulatory apprehensions.
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By GlobalDataEurope remains a significant market for the assets MMG intends to acquire.
Hey told the Financial Times: “From a competition basis, we are very confident that as new entrants to this market, and with very strong demand in Europe, we are in a good place.
“Anglo’s nickel business had a solid European customer base that MMG was 100% committed to serving.
“You have somebody who is able to run an asset for the long-term and sustainably, and continue to produce those products, which are in strong demand, especially in European, Asian and US markets.”
The deal, first announced in February this year, has drawn criticism from organisations such as the American Iron and Steel Institute.
The trade association has urged the US administration to intervene, stating that the acquisition could bolster China’s control over nickel.
Nickel is a key component in electric vehicle production and stainless steel manufacturing.
Hey said that MMG’s Chinese backing could offer crucial support in the nickel market, which has experienced a decline in prices since 2022.
He anticipates a decision from the EU before the end of the year.
Although the company initially sought expedited approval through a simplified procedure, the application was withdrawn in May.
Hey added: “MMG was also looking for opportunities in the copper market. Copper is our number one target, although new, opportunities are difficult to find.
“Almost 80% of the company’s sales in the six months to 30 June came from its copper business.”
Separately, MMG is in ongoing discussions with Brazilian authorities following an investigation initiated by the country’s antitrust body, CADE, in response to a competitor’s complaint.
MMG is actively engaging with Brazilian regulators concerning the probe.
