HONG Kong-listed MMG said on Wednesday it would revise the remedies it has offered the European Commission as it seeks EU antitrust clearance for its $500m bid for Anglo American’s Brazilian nickel business.
“The feedback has been critical but constructive and we are confident our modified proposal will resolve outstanding concerns for both customers and European Commission regulators,” MMG said in a statement obtained by Reuters.
A person familiar with the discussions said the changes include larger ferronickel volumes for Europe, greater surety over contracts and optionality over pricing.
The move follows a combative closed hearing earlier this month at which MMG and Anglo American defended the deal before Commission officials and third parties.
The Commission, the EU’s competition enforcer, has warned that MMG could divert ferronickel supplies from Europe to China. That could hurt the bloc’s stainless steel producers at a time of wider EU concern over reliance on China for critical minerals.
China’s state-owned Minmetals holds 67% of MMG. The rest is owned by investors including BlackRock and Vanguard.
The sale of the assets is part of Anglo American's restructuring in which it is also seeking to sell its diamond business De Beers. An agreement has already been struck to sell its coking coal operations in Australia while it demerged its stake in its platinum subsidiary a year ago.
Speaking of dealmaking in general terms, Anglo American CEO Duncan Wanblad said in October that it was becoming increasingly difficult to do owing to regulatory pressures.
"Who would have thought it would take two years in a regulatory process to get a nickel business sold?" said Wanblad in a presentation to the Joburg Indaba conference. "We are now heading into the second year since we announced the sale of the nickel business.
"We announced the merger with Teck just over a year ago. We are still waiting for final regulatory approval. So these things get really choppy out there. You need a pretty steadfast approach to getting all of this done, because nothing happens very quickly."
He added: "Given the recent geopolitical changes, the increase in volatility, the breaking down of unified supply chains, this critical minerals nationalism, the defence aspects, we are in new waters, right? So in a way we are pioneering here.
"I genuinely don't think there should be any antitrust issues with any of these deals. But we still have to complete nickel and we still have to complete Teck, so we are kind of the guinea pigs for the market in working this out."