CHINESE-owned MMG is confident it will secure European regulatory approval for its $500m acquisition of Anglo American’s nickel assets, according to a report in the Financial Times on Friday.
Troy Hey, MMG’s executive GM of corporate relations, told the newspaper that EU antitrust regulators had raised reservations about the group’s Chinese majority ownership.
However, he said the company was “confident” of gaining approval as it does not currently operate in the ferronickel market or Brazil, where Anglo’s nickel assets are located. “From a competition basis, we’re very confident that as new entrants to this market and with very strong demand in Europe, we’re in a good place,” Hey said.
The February deal between Anglo and MMG – which is two-thirds owned by state-controlled China Minmetals – has drawn criticism from groups warning it will strengthen China’s dominance over metals essential for the energy transition.
The transaction forms part of Anglo’s restructuring following its successful defence against a takeover bid by rival BHP. The London-listed miner has since agreed a $50bn merger with Canada’s Teck Resources.
Critics including the American Iron and Steel Institute have urged intervention, arguing the deal would reinforce Chinese influence over nickel used in electric vehicles and stainless steel, said the Financial Times.
But Hey argued MMG’s Chinese backing would provide crucial support in a challenging nickel market where prices have plummeted since 2022. “You have somebody who is able to invest and grow, able to run an asset for the long term and sustainably,” he said.
Hey expects an EU decision before year-end, whilst Brazilian authorities have also opened a probe following a competitor’s complaint.
