MMG Offers EU Concessions to Save $500M Anglo Nickel Deal
MMG, the Hong Kong-listed mining company backed by China, is preparing stronger supply commitments for European customers as it tries to win regulatory approval for its $500 million purchase of Anglo American's Brazilian nickel operations.
The company plans to revise the concessions it has offered to the European Commission, the EU's competition regulator. Regulators and customers have objected that the deal could hurt Europe's stainless steel industry.
What the new offer would change
The revised proposal would raise the amount of ferronickel set aside for European buyers. Ferronickel is an iron-nickel alloy used to make stainless steel.
It would also add stronger contractual protections and more flexible pricing arrangements, according to a person familiar with the discussions.
MMG said it remained optimistic that the extra safeguards could answer the objections raised by competition authorities and customers, according to a company statement.
A deal caught in a wider dispute
The transaction has become entangled in broader European worries about China's influence over international mineral supply chains. Nickel is a key input for stainless steel, which is why the Brazilian assets have drawn scrutiny in Brussels.
The revised concessions follow a contentious private hearing earlier this month, where the objections to the deal were aired.
The commitments are designed to reassure European buyers that they would keep access to supply and fair terms if ownership of the Brazilian operations passes from Anglo American to MMG.
The company has not said when it will submit the amended package to the Commission.
