MMG today received the European Commission’s Statement of Objections regarding the proposed acquisition of Anglo American’s Nickel Brazil business. The Commission’s preliminary concerns do not reflect the facts, the commercial realities of the ferronickel market or MMG’s longstanding trac record as a reliable supplier to international customers.
“Blocking this acquisition would create a lose-lose outcome for all stakeholders,” said Troy Hey, Executive General Manager Corporate Relations. “Rather than strengthening competition, it threatens to limit investment and jobs in Brazil and remove supply from the market.”
Ferronickel is not classified by the European Commission as a strategic raw material and is traded globally based on commercial demand. MMG currently has no ferronickel production or market share. The acquisition would introduce a new competitor into the ferronickel market while preserving continuity of supply through the transfer of Anglo American’s European marketing function and existing customer contracts. Nickel Brazil would continue to operate as a standalone business supported by its experienced local management team, with MMG intending to invest in the operation and assess future development opportunities.
“We want to get through the European Commission by doing everything we possibly can to support that market, while having a business in Brazil that we can invest in and grow,” said Mr Hey. “We’ve opened the office in Europe and are willing to commit everything that would make European customers in as good or a better place than they were with Anglo.”
MMG is a publicly listed company with a diverse international shareholder base. China Minmetals Corporation is the company’s major shareholder (owning 63 per cent of outstanding shares), and MMG has supplied customers globally on a commercial basis for more than 16 years, marketing its products according to commercial demand.
The transaction has successfully progressed through all other required regulatory processes, with the European Commission review representing the final remaining approval required to complete the acquisition. MMG remains confident that a full assessment of the facts and applicable law will demonstrate that the transaction strengthens competition, supports continuity of supply and delivers the best long-term outcome for customers, employees, communities and the broader industry.
The Statement of Objections represents the Commission’s preliminary assessment of the transaction and is not a final decision. MMG will continue to challenge and engage constructively with the Commission and respond fully to the points raised.
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Felicity Watson
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felicity.watson@mmg.com