MMG accuses EU antitrust regulators of ignoring evidence backing Anglo American deal

MMG Claims EU Antitrust Ignored Evidence in Anglo American Nickel Deal

By Foo Yun Chee

MMG Defends Nickel Deal Against EU Antitrust Concerns

BRUSSELS, Oct 8 (Reuters) - Hong Kong-listed mining and metals company MMG accused EU antitrust regulators on Thursday of ignoring evidence that its bid for Anglo American's Brazilian nickel business would not divert supplies from Europe to China.

Hearing Before EU Regulators

The comments came after a day-long hearing at which MMG and Anglo American defended the $500 million deal before EU antitrust regulators, including the European Commission's top merger official, Guillaume Loriot.

MMG's Response to Commission's Inquiry

"The Commission's decision to open an in-depth inquiry and the allegations of a plan to divert supply of ferronickel from Europe are fundamentally unsupported," MMG's executive general manager for corporate relations Troy Hey told reporters.

Allegations of Selective Evidence Use

"The Commission has selectively used two partial and misleading quotations from over 200,000 documents supplied by MMG and its major shareholder — while ignoring all the other evidence, economic and market analysis to the contrary," he said.

Concerns Over European Nickel Supply

The Commission, the EU's competition watchdog, warned last month that MMG could redirect ferronickel supplies away from Europe, potentially harming the bloc's stainless steel producers. The case comes amid broader EU concerns about dependence on China for critical minerals.

Market Developments and Independent Analysis

Hey also accused the Commission of ignoring market developments since opening a full-scale investigation in November and the independent market analysis it had commissioned.

Support from Commodities Traders

He said commodities traders Glencore and Trafigura had written to the Commission saying they were confident MMG would continue supplying them.

MMG's Willingness to Address Concerns

Hey said MMG was willing to address all of the Commission's concerns, suggesting it may be prepared to offer remedies in the coming weeks.

Potential Impact on Anglo American's Brazilian Operations

Anglo American Brazil Chief Operating Officer Ruben Fernandes and Chief Financial Officer Cristina Morgan were expected to tell regulators at the hearing that blocking the deal would likely force the mine to close, according to prepared remarks seen by Reuters on Wednesday.

(Reporting by Foo Yun Chee. Editing by Mark Potter)