Minerals | EU Issues Statement of Objections to China Minmetals’ Acquisition of Anglo American’s Brazilian Nickel Business

Focusing on Chinese enterprises’ global expansion, we bring you authoritative, cutting-edge, and trustworthy research insights on internationalization, high-end technology, and reliability. On September 16, 2026, the European Commission’s Directorate-General for Competition issued a formal Statement of Objections to MMG Limited—a subsidiary of China Minmetals Corporation—regarding its proposed acquisition of Anglo American’s Brazilian nickel business. — ༄ — The European Commission has notified MMG Limited (“MMG”) of its preliminary view that MMG’s proposed acquisition of Anglo American’s nickel business (the “Target Assets”) may restrict competition in the market for low-carbon ferronickel in the European Economic Area (EEA). Low-carbon ferronickel is a critical alloy raw material for stainless steel production. The Commission is concerned that, following completion of the transaction, MMG might divert supplies of low-carbon ferronickel away from the European market, thereby increasing production costs for European stainless steel manufacturers. MMG is a multinational mining and metals company engaged globally in the exploration, development, and production of base metals—primarily copper and zinc. The Target Assets are located in Brazil and comprise two operational nickel-iron production facilities, as well as two greenfield development projects (i.e., undeveloped new projects). ▍01 Statement of Objections On November 4, 2025, the European Commission launched an in-depth (Phase II) investigation to assess whether MMG’s acquisition of Anglo American’s nickel business could reduce the supply of low-carbon ferronickel available to stainless steel producers in the EEA. The Commission conducted an extensive investigation to define the affected markets and assess the transaction’s potential effects. This included reviewing internal documents submitted by both parties, as well as collecting market data and industry analyses from competitors and customers. Preliminarily, the Commission concluded that the low-carbon ferronickel market is highly concentrated: (i) the Target Assets hold significant market power; and (ii) alternative supply sources accessible to European customers are limited. Based on the findings of the in-depth investigation, the Commission expressed concern that, post-transaction, MMG may prioritize supplying low-carbon ferronickel produced by the Target Assets to state-owned stainless steel producers under the supervision of China’s State-owned Assets Supervision and Administration Commission (SASAC), thereby reducing supplies to European producers. Such a supply diversion—combined with scarce alternative sources—could negatively impact low-carbon ferronickel prices in the EEA, weaken supply-chain resilience for European stainless steel producers, and ultimately drive up prices for European stainless steel products. A Statement of Objections is a formal procedural step in the Commission’s investigation, whereby it sets out its objections to the parties in writing. Issuing a Statement of Objections does not prejudge the final outcome of the investigation. MMG now has the right to respond to the objections, consult the Commission’s case file, and request an oral hearing.

The ‘King of Diamonds’ Myth Shattered! Anglo American Plans to Sell 85% Stake in De Beers for Just $1 Billion

Anglo American plc is negotiating the sale of its De Beers diamond business for approximately USD 1 billion—a valuation representing over a 90% decline from the peak value once commanded by this former global diamond market leader. According to Bloomberg, citing people familiar with the matter, earlier this month Anglo American identified a consortium led by Gareth Penny—former CEO of De Beers—as its preferred bidder. Under the current proposed transaction structure, the consortium would acquire Anglo American’s 85% stake in De Beers for approximately USD 1 billion: roughly USD 750 million payable at closing, with the remaining USD 250 million paid later, plus additional performance-linked contingent consideration. This proposed sale comes amid a deep cyclical crisis gripping the global diamond industry—pressured simultaneously by weakening luxury consumption, rising penetration of lab-grown diamonds, and geopolitical tensions—leading to a sharp decline in natural diamond prices. Transaction Structure: 85% Stake Valued at ~USD 1 Billion; Consortium to Inject USD 500 Million According to sources, the buyer is the Global Diamond Consortium (GDC), comprising entities from Namibia and Angola, along with several top-tier global diamond traders, and led by Penny. Per the negotiated terms, GDC will pay Anglo American approximately USD 1 billion in installments—about USD 750 million at closing, and the remaining USD 250 million thereafter. In addition, the buyer will inject approximately USD 500 million into De Beers to support its operations and transformation. Historical Valuation Comparison: From Over USD 18 Billion to ~USD 1 Billion This proposed price starkly contrasts with De Beers’ historical valuations, reflecting profound structural shifts within the natural diamond industry. Anglo American acquired control of De Beers from the Oppenheimer family in 2011, valuing the business at nearly USD 13 billion; and when Anglo American and the Oppenheimers jointly took De Beers private back in 2001, its valuation exceeded USD 18 billion.

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