MMG Offers Legal Supply Guarantee to Win EU Nod for Anglo American Nickel Deal

what happened

MMG has offered a legally enforceable supply guarantee to win over European Union officials, who are weighing its bid for Anglo American's Brazilian nickel unit, Dow Jones Newswires reports.

In September, EU officials sent the companies a formal statement of objections. They worried that MMG, majority owned by China Minmetals, could redirect ferronickel shipments away from European buyers. The Commission's in-depth investigation is due to conclude by November 30.

MMG said the deal raises no competition concerns and could be cleared unconditionally. Troy Hey, its corporate relations chief, said the guarantee is enforceable under UK law and can be monitored independently, and warned that the Brazilian mines would close if the deal is blocked. Anglo American said the offer fully addresses the regulator's competition concerns.

why it matters

For the nickel market, the outcome matters: unconditional clearance would remove uncertainty over the Brazilian assets, while a rejection could affect ferronickel supply to Europe and sentiment toward stainless steel raw materials.

market impact

Nickel and stainless producers: the EU decision determines the deal's fate and ferronickel supply to Europe

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