Keep knowledgeable with free updates
Merely signal as much as the Mining myFT Digest — delivered on to your inbox.
The European Fee is getting ready to launch an in-depth investigation into the $500mn sale of Anglo American’s nickel enterprise to China-backed MMG, in line with two officers briefed on the case.
The transaction agreed in February between Anglo and MMG, which is two-thirds owned by state-owned China Minmetals, has attracted criticism from teams that say it is going to reinforce Beijing’s management of metals which can be essential for the power transition. Europe is a significant marketplace for the enterprise being acquired by MMG.
The anticipated transfer by Brussels comes amid rising tensions between China and the EU over entry to uncommon earths, because the bloc finds itself caught in the course of a bigger confrontation between Beijing and Washington.
MMG thought it had addressed any competitors issues by way of treatments it believed would assure continued provide by Anglo into the European market.
Nonetheless, Brussels is ready to conclude there are grounds for a probe, in line with the officers.
An individual accustomed to MMG’s view stated the corporate was “stunned and upset the fee didn’t even try to market check the treatment, even after a number of prospects had informally expressed help”.
MMG stated it might “proceed to work with regulators by way of the in-depth investigation and is assured it might probably totally resolve their issues”.
Anglo stated it and MMG “are persevering with to work with the European Fee to acquire the required approval”.
“We imagine that European prospects would help Anglo American’s ongoing position as a marketer of ferronickel, whereas provide competitors in Europe would additionally improve with the addition of MMG as a brand new provider,” the corporate added.
China this month imposed sweeping export restrictions on uncommon earths in response to US measures. Many European companies depend on these vital minerals to fabricate applied sciences equivalent to electric vehicles or fighter jets.
In an extra escalatory step, the Netherlands late final month seized control of chipmaker Nexperia from its Chinese language proprietor, prompting China to additionally impose export curbs on Nexperia semiconductors completed off in China.
European and Chinese language officers are set to debate the export curbs at a gathering in Brussels on Friday.
The fee declined to touch upon Anglo-MMG because the case is ongoing. Its deadline to decide is November 4.
