Anglo American nickel sale receives formal EU antitrust objections

The European Commission issued antitrust objections to MMG’s proposed purchase of Anglo American’s ($AAL-LSE) Brazilian nickel business. The concern is that supplies of ferronickel currently available to European steelmakers could be redirected toward affiliated buyers. This moves the process beyond earlier media reports that a formal objection might be forthcoming.

Anglo American disputes the competition assessment and argues that the transaction would not change the number of suppliers in the market. MMG has indicated a willingness to provide long-term supply assurances to European customers. Those positions do not establish that a remedy has been accepted. A statement of objections is a preliminary regulatory challenge, not a final prohibition, and the report does not confirm that the sale has been canceled.

Sources:

• Reuters — formal EU objections, London South East reprint