The European Commission has warned that Anglo American’s plan to sell its Brazilian nickel operations to China’s MMG Limited could divert nickel supplies away from Europe. Regulators say the deal may heighten Europe’s dependency on Asian suppliers and complicate the bloc’s long-term strategy to secure critical raw materials for its clean energy and industrial sectors.
According to the Commission, nickel is one of the metals considered vital to Europe’s transition toward electric mobility and renewable energy. Officials expressed concern that increased Chinese ownership of upstream nickel assets could restrict access to the metal for European manufacturers. The Commission noted that it will closely review the transaction for potential implications on competition and supply resilience within the region.
Anglo American announced earlier this year that it would sell its Barro Alto nickel mine in Brazil to MMG Limited in a deal valued at around 1.5 billion dollars. The transaction forms part of Anglo’s broader portfolio restructuring, which focuses on cutting costs and concentrating on core assets such as copper and iron ore. The move follows sustained pressure from investors seeking improved returns amid a slowdown in the metals sector.
MMG, a Hong Kong-listed company with majority ownership by state-backed China Minmetals, has been expanding its global footprint in copper and base metals to strengthen supply for China’s growing energy and manufacturing demand. Analysts say the deal would deepen China’s influence over critical mineral supply chains at a time when Western economies are seeking to reduce their dependence on imported materials.
Market watchers warn that if the deal shifts nickel exports away from Europe, regional industries that produce stainless steel and electric vehicle batteries could face tighter supply conditions and higher input costs. The European Union has identified nickel as a strategic resource under its Critical Raw Materials Act, emphasizing the need to diversify sources and strengthen domestic production.
Both companies have said they will cooperate fully with regulators. Industry observers believe the European Commission’s concerns reflect broader geopolitical tensions over control of resources essential to green technologies. The outcome of the review could shape how future mining acquisitions involving Chinese entities are treated by European regulators.
