(Reuters) -Brazil’s competition watchdog CADE has opened an investigation into Anglo American’s plan to sell its nickel operations in the country to a unit of Hong Kong-listed MMG for up to $500 million, the Financial Times reported on Wednesday. The probe follows a complaint from CoreX Holding, a global industrial group and direct competitor in […]
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Brazil opens probe into Anglo American’s $500 million nickel business sale, FT reports
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(Reuters) -Brazil’s competition watchdog CADE has opened an investigation into Anglo American’s plan to sell its nickel operations in the country to a unit of Hong Kong-listed MMG for up to $500 million, the Financial Times reported on Wednesday.
The probe follows a complaint from CoreX Holding, a global industrial group and direct competitor in the region, the report said, citing an unidentified source.
“Based on a complaint received, an Administrative Procedure for Investigating an Act of Economic Concentration was instituted,” the FT quoted CADE as saying.
However, CADE noted that the launch of an investigation does not necessarily mean the deal will be blocked, the report added.
Anglo declined to comment, while CoreX and Brazil’s competition authority did not respond to Reuters’ request for comment.
In February, the London-listed miner agreed to sell its nickel business in Brazil.
Anglo demerged its platinum business in May and in July said that its nickel and steelmaking coal assets were discontinued operations, with their sale agreed but not yet completed.
The company has been selling or spinning off non-core assets to focus on copper and iron ore since bigger rival BHP’s failed takeover attempt last year.
Anglo is also considering options for its loss-making De Beers diamond unit, including a possible sale or listing.
(Reporting by Rishabh Jaiswal in Bengaluru; Editing by Sumana Nandy and Mrigank Dhaniwala)