BRAZIL’S competition regulator has opened an investigation into Anglo American’s proposed disposal of its nickel assets in the country, creating fresh obstacles for the mining giant’s ongoing restructuring programme, said the Financial Times on Wednesday.
Cade, Brazil’s antitrust authority, launched the probe following a complaint about the $500m transaction agreed in February with MMG Singapore Resources, a subsidiary of China-backed MMG. The regulator confirmed it had initiated “an Administrative Procedure for Investigating an Act of Economic Concentration” but stressed this did not automatically indicate the deal would be blocked.
Sources close to the matter revealed that CoreX Holding, the conglomerate controlled by Turkish investor Robert Yildirim, filed the complaint. CoreX competes directly in the regional market, having struck a deal in July to acquire a Colombian ferronickel operation for up to $100m, said the newspaper.
The Brazilian intervention compounds Anglo’s disposal challenges as it implements a sweeping reorganisation following last year’s successful defence against BHP’s £39bn hostile takeover attempt. The miner’s restructuring plans have already encountered significant setbacks.
A $3.8bn agreement to sell its coal operations to Peabody Energy collapsed in August when the American buyer withdrew, citing “material adverse change” after a mine explosion. Anglo has since initiated arbitration proceedings seeking damages for what it terms “wrongful termination.”
The company also faces complications in offloading its De Beers diamond unit, with Botswana’s government aggressively seeking to increase its ownership stake, potentially derailing sale or flotation plans.
The Brazilian probe follows pressure from Washington, where the American Iron and Steel Institute urged White House intervention in the Anglo-MMG deal. The trade body warned that approval would strengthen China’s nickel sector dominance, giving Beijing “direct influence over a substantial portion of Brazil’s nickel reserves” alongside its existing control of Indonesian production.
Nickel’s strategic importance for stainless steel and electric vehicle batteries has heightened Western concerns about Chinese control. Indonesia leads global production, but Chinese investment has delivered extensive sector influence over the past decade, alarming policymakers focused on securing critical mineral supplies.
MMG, listed in Hong Kong with state-owned China Minmetals Corporation as its largest shareholder, has pursued an aggressive acquisition strategy, targeting overseas assets including those held by Western mining companies, said the Financial Times.
