The European Commission has raised concerns over a proposed acquisition of Anglo American‘s nickel business in Brazil by China’s MMG Limited. The deal could impact European access to low-carbon ferronickel, a key material for stainless steel production.
In a Statement of Objections, the Commission outlined its preliminary view that the transaction may reduce the availability of this critical input for European manufacturers. While a final decision is expected later this year, the case highlights the EU’s focus on safeguarding strategic supply chains.
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European Steel Association’s Stance
The European Steel Association has welcomed the Commission’s approach, emphasizing the importance of low-carbon ferronickel imports for European competitiveness, decarbonization, and industrial autonomy. They advocate for robust, long-term structural safeguards over contractual commitments if the acquisition proceeds.
A Distinct Market for Low-Carbon Ferronickel?
European stainless steel producers are under strict regulatory pressure to reduce greenhouse gas emissions in line with the EU’s climate targets and the Carbon Border Adjustment Mechanism. While the Commission has not definitively established a separate market for low-carbon ferronickel based solely on its carbon footprint, it is treating it as a strategically distinct input. The final decision will clarify whether and how the carbon footprint of this material influences market definition, including factors like supplier availability, customer demand, and product substitutability.
