By Foo Yun Chee
BRUSSELS (Reuters) -Anglo American has offered to buy ferronickel from MMG for resale in Europe for up to 10 years to ease EU antitrust concerns about the sale of its nickel business to a unit of the Hong Kong-listed company, a person with direct knowledge of the matter said on Wednesday.
London-listed Anglo American announced the $500 million deal to sell its nickel business in Brazil in February. The European Commission is now examining the sale.
The offered remedy would address any regulatory concerns that the deal could cut off some of the supply of the metal for customers in Europe, while still enabling the Hong Kong company to sell its products in Europe, the source said.
The deal would be for an agreed amount of ferronickel from the two mines in Brazil which is equivalent to their current sales in Europe, the person said. It would be valid for five years with an option for another five years.
The Commission, which acts as the EU competition enforcer, confirmed receipt of Anglo American’s remedies and extended its deadline decision to November 4.
It is expected to seek feedback from rivals and customers before deciding whether to accept the concessions, demand more or open a four-month-long investigation.
The sale is part of Anglo American’s broader restructuring to refocus on copper and iron ore mining. Around two-thirds of all refined nickel produced is used by the stainless steel industry.
(Reporting by Foo Yun Chee; Editing by Kirsten Donovan and Tomasz Janowski)
