Commission opens in-depth investigation into the proposed acquisition of Anglo American’s nickel business by MMG

This article is brought to you in association with the European Commission.

The European Commission has opened an in-depth investigation to assess, under the EU Merger Regulation, the proposed acquisition of Anglo American’s nickel business (‘the target’)by MMG. The Commission has preliminary concerns that the transaction could enable MMG to divert ferronickel supply away from European markets, leading to higher costs and reduced quality in European stainless steel production.

MMG is a multinational mining and metals company engaged in the exploration, development and production of base metals, primarily copper and zinc, for global industrial markets. MMG is controlled by Chinese state-owned company China Minmetals Corporation. The target consists of two operating ferronickel facilities and two greenfield development projects located in Brazil.

The Commission’s preliminary concerns

Ferronickel is a key alloying material in stainless steel production, providing the nickel content necessary to enhance the steel’s strength, corrosion resistance and durability.

The Commission’s preliminary investigation indicates that the transaction could enable MMG to divert the target’s ferronickel supply away from European stainless steel producers, possibly leading to an increase in their production costs and affecting their ability to compete.

In particular, the Commission preliminarily found that:

• The targetholds substantial market power in the highly concentrated market for low-carbon ferronickel, where European customers have limited access to alternative sources of supply;
• Following its acquisition by MMG, the targetmay have an incentive to degrade its supply to European customers in favour of its group’s downstream activities;
• Such a diversion of supply, combined with limited alternative supply sources, could adversely affect the price and quality of a substantial share of European stainless steel production, thereby diminishing the European producers’ ability to compete both within the EU and globally.

To address these concerns, MMG submitted a set of commitments to the Commission immediately before the submission deadline. However, these commitments were not sufficiently clear-cut to address the competition problems identified, notably because they were purely behavioural and did not entail any structural changes to the business. For this reason, the Commission did not conduct a market test of the proposed remedies. A number of stakeholders nonetheless spontaneously raised concerns with the Commission regarding the adequacy of such envisaged behavioural commitments.

The Commission will now carry out an in-depth investigation into the effects of the proposed transaction to determine whether its initial competition concerns are confirmed.

The proposed transaction was notified to the Commission on 16 September 2025. The Commission now has 90 working days, until 20 March 2026, to take a decision.

The opening of an in-depth inquiry does not prejudge the outcome of the investigation.

Companies and products

MMG is a multinational metals and mining company engaged in the exploration, development and production of base metals, primarily copper and zinc. Headquartered in Melbourne, Australia, MMG operates mining assets across Australia, Botswana, Democratic Republic of Congo and Peru. The company is listed on the Hong Kong Stock Exchange and is majority-owned by China Minmetals Corporation, a state-owned enterprise under the control of the State-owned Assets Supervision and Administration Commission of the Chinese State Council.

Anglo American’s nickel business comprises Brazilian operations producing nickel, including for the European markets. Its principal asset, the Barro Alto operations in the state of Goiás, is a fully integrated open-pit mine with smelting and refining facilities that produce low-carbon ferronickel primarily used in stainless steel manufacturing. The business also includes the Codemin operations, as well as two undeveloped nickel projects located in Jacaré and Morro Sem Boné.

Merger control rules and procedures

The Commission has the duty to assess mergers and acquisitions involving companies with a turnover above certain thresholds (see Article 1 of the EU Merger Regulation) and to prevent concentrations that would significantly impede effective competition in the European Economic Area (‘EEA’) or a substantial part of it.

The vast majority of notified mergers do not pose competition problems and are cleared after a routine review. From the moment a transaction is notified, the Commission generally has 25 working days to decide whether to grant approval (Phase I) or to start an in-depth investigation (Phase II).

In addition to the current transaction, there are currently two other ongoing Phase II merger investigation: the proposed acquisition of Kellanova by Mars and the proposed acquisition of Downtown by Universal Music Group.

More information will be available on the Commission’s competition website, in the public case register under the case number M.11944.