Anglo American might have to close its Brazilian nickel operations if European Union authorities decide to veto an up to $500 million sale to MMG, the company was set to tell the bloc's merger officials Thursday.
Executives for the London-headquartered mining group were in Brussels for a hearing with officials from EU executive, the European Commission to defend the planned transaction, agreed on last year, which would see Anglo American sell its Brazilian nickel business to an MMG subsidiary for up to $500 million.
According to notes seen by Dow Jones Newswires as the meeting took place, Anglo American Chief Operating Officer Ruben Fernandes was expected to say that Hong Kong-listed MMG is the only credible buyer the company had found.
"Given our commitment to exit our nickel business more than two years ago, we will have little option but to head towards 'care and maintenance' as the pathway to closure in the event that the commission prohibits the sale to MMG," he was set to say. A veto would be a blow to Anglo's employees and local communities in Brazil, and nickel supply from the market, according to the notes.
EU officials opened an in-depth investigation into the deal in November 2025 over concerns that MMG--which is majority owned by state-owned China Minmetals--could divert ferronickel supplies away from European markets, and sent a formal statement of objections to the companies in September. The commission has a Nov. 30 deadline to end its probe.
According to the notes, Anglo American's market expert John Eastwood was due to say that MMG would have no ability to affect the European market for ferronickel, while Cristina Morgan--chief financial officer of the company's Brazilian business--was expected to argue the case for MMG as a credible buyer for the unit that would continue to serve customers in the EU effectively.
The commission declined to comment on Anglo American's expected statements.
Anglo American is completing a major shake-up that began after it rebuffed a nearly $50 billion hostile takeover bid from bigger rival BHP in 2024. It spun off its platinum business into Valterra Platinum, agreed to sell its steelmaking coal assets in Australia and is selling its diamond business De Beers.
It has refocused its attention on its copper, premium iron ore, and crop nutrients businesses, and is in the midst of a merger with Teck Resources in a deal that would create one of the world's largest copper producers.