Shares of Anglo American plunged 6.5% to €46.60 after the European Commission escalated its antitrust campaign against the miner's $500 million sale of Brazilian nickel assets to MMG, the Hong Kong-listed subsidiary of China's state-owned Minmetals. The EU plans to issue a formal statement of objections — essentially a charge sheet — later this month , signaling that concessions offered so far have failed to satisfy regulators. For a company betting its future on becoming a streamlined copper producer, the delay threatens both cash flow and credibility.
Brussels Sees a China Problem, Not Just a Competition Problem
The scrutiny centres on whether the transaction could tighten Europe's access to ferronickel, a key stainless-steel feedstock, as the bloc tries to limit its exposure to Chinese-controlled critical mineral supply chains.
An earlier remedy — Anglo committing to buy back ferronickel from MMG — was deemed insufficient by regulators. This isn't a routine merger review; it sits at the intersection of antitrust and EU industrial policy on strategic minerals.
The Deal Is Already 18 Months Late
MMG and Anglo have already extended the deal's deadline from June 2026 to October 31, 2026 , buying time but adding uncertainty. The deal structure — $350 million upfront plus $150 million in contingent payments — means Anglo's expected proceeds shrink the longer approval drags. If the October deadline passes without clearance, the sale could collapse entirely, leaving Anglo saddled with an asset it has publicly committed to exit.
The Bigger Picture: A Copper Transformation at Risk Anglo's entire strategy hinges on shedding nickel, coal, and diamonds to focus on copper, iron ore, and crop nutrients. The simplified portfolio generated $4.1 billion in EBITDA in H1 2026, up 31%, with margins reaching 46%.
Copper now drives roughly 70% of EBITDA. But the nickel and coal divestitures — together worth up to $5.3 billion — remain incomplete. A blocked nickel sale wouldn't crush the balance sheet, but it would undermine the narrative that Anglo can swiftly reshape itself into a premium copper play — a story the market has yet to fully price in, with Anglo still trading at a discount to copper peers.
What to Watch: Whether MMG offers structural remedies — like guaranteed European supply commitments — before the October deadline. Without them, Anglo may need a new buyer, resetting the clock on a transformation shareholders have waited years to complete.