European antitrust authorities are scrutinizing MMG's $500 million bid to acquire Anglo American's nickel assets, raising concerns over Chinese ownership influence, but MMG remains confident the deal will gain approval due to strong European demand for nickel.

MMG, backed by China Minmetals, expects to secure European approval despite regulatory concerns, as the strategic importance of nickel in electric vehicles and stainless steel sustains high demand.

This acquisition is part of Anglo American's broader restructuring, which includes spinning off its platinum operations into Valterra and classifying its nickel and steelmaking coal divisions as discontinued.

The deal faces multi-jurisdictional scrutiny, including investigations by Brazilian authorities, potential US reviews, and Australian regulations, complicating the approval process.

The outcome of this transaction will set important precedents for Chinese foreign investment in critical minerals, supply chain security, and sector consolidation, influencing future global resource management.

Meanwhile, Anglo American is shifting its strategic focus toward copper, aiming to become the fifth-largest copper producer globally through a proposed $53 billion merger with Teck Resources.

In the US, the deal is under pressure from the American Iron and Steel Institute, which urges the government to block it over fears of increased Chinese influence on critical nickel reserves used in electric vehicle batteries and stainless steel.

Brazil’s competition authority has launched a probe into the sale because Anglo American’s nickel operations are based there, although MMG does not operate in Brazil.

EU regulators are expected to deliver a decision before the end of 2025, with options including unconditional approval, conditional approval, extended review, or blocking; industry analysts consider conditional approval most likely.

EU approval is crucial due to competition concerns, Chinese ownership influence, and strategic implications for critical mineral supply chains, with the review process initiated in April 2025.

Market reactions have been cautious, with MMG shares volatile, but Anglo American investors see the divestment as positive; the outcome will influence future Chinese investments and EU regulatory approaches.

Regulatory hurdles include concerns over MMG’s majority Chinese ownership, potential market concentration, and supply chain security, leading to a shift from expedited to standard review, indicating increased complexity.