Herbert Smith Freehills has advised Anglo American plc on the sale of its nickel business in Brazil, comprising two ferronickel operations and two high quality greenfield growth projects, to MMG Singapore Resources Pte. Ltd, a wholly owned subsidiary of MMG Limited (MMG).

The cash consideration comprises an upfront payment of US$350 million at completion, the potential for up to US$100 million in a price-linked earnout, and contingent cash consideration of US$50 million linked to the final investment decision for the development projects. The transaction is subject to a number of conditions, including customary competition and regulatory clearances. Completion is expected by Q3 2025.

Anglo American is a leading global mining company focused on the responsible production of copper, premium iron ore and crop nutrients which are essential for decarbonising the global economy, improving living standards, and food security. The company’s nickel business is well positioned to serve both the stainless steel and battery value chains. The transaction forms part of Anglo’s strategic portfolio simplification strategy.

The Herbert Smith Freehills team was led by London Corporate partners Greg Mulley and Laura Hulett, supported by senior associates Anna Le Poidevin and Marcelo Valenca, associates Katerina Jovanovska, Trevor Lowe, Rikesh Murva and Jack Aynsley, and trainee solicitor Ruaridh Brown.

Laura Hulett commented: “We are delighted to have supported Anglo American on this strategic divestment, which was highly competitive and fast paced. The Anglo team was a pleasure to work with throughout.”

Greg Mulley, Corporate M&A partner and Head of Mining UK and EMEA at Herbert Smith Freehills commented: “This has been an important M&A deal for an important client at a key time in the industry. We’re very pleased to have been part of it and to have worked with the great team at Anglo.”