THE European Commission is to launch an investigation into the $500m sale of Anglo American’s nickel business to Chinese company MMG, said the Financial Times citing two officials briefed on the matter.
A concern is the deal will consolidate Beijing’s dominance over metals essential to energy transition, the newspaper said. MMG is controlled by state-owned China Minmetals.
Tensions between the EU and China regarding rare earth access are high after China threatened to impose rare earth export controls – a response to US trade tariffs.
European manufacturers depend on so-called ‘critical minerals’ for products including electric vehicles and military aircraft. The Netherlands’ recent seizure of chipmaker Nexperia from Chinese ownership prompted retaliatory Chinese semiconductor export limitations, said the Financial Times.
MMG proposed remedies to ensure continued European supply from Anglo, yet the EU has determined sufficient grounds exist for detailed examination, the Financial Times said.
MMG was surprised regulators “didn’t even attempt to market test the remedy, even after several customers had informally expressed support”, company officials said. However, MMG was “confident it can fully resolve their concerns” whilst cooperating with investigators.
Anglo stated both companies “are continuing to work with the European Commission to obtain the required approval”, adding that European customers would welcome Anglo’s continued marketing role whilst MMG’s entry would boost supply competition.
Friday’s Brussels meeting between European and Chinese officials will address export controls. The commission faces a November 4 decision deadline, said the Financial Times.
