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China-backed MMG Ltd. has struck a deal to acquire Anglo American PLC’s nickel assets in Brazil for up to $500 million, a move that signals a strategic overhaul for the British mining giant. The agreement, announced Tuesday, comes as Anglo American sheds assets to refine its business focus.

MMG’s Singapore-based subsidiary will initially pay $350 million in cash upon closing, expected by March. But the transaction holds more weight—potentially surging by an additional $150 million if performance targets are met.

The deal remains subject to regulatory approval, though specific agencies overseeing the review were not disclosed.

Expanding MMG’s Reach in Latin America

“We are excited by our acquisition of Anglo American's nickel business, which provides important diversification for our business and strengthens our presence in Latin America,” MMG CEO Cao Liang stated.

The acquisition includes nickel-producing operations in Barro Alto and Codemin, key players in alloy manufacturing such as stainless steel. MMG will also gain control of two undeveloped sites in Jacaré and Morro Sem Boné, adding further potential to its portfolio.

MMG, headquartered in Australia and 68% owned by Chinese state-run China Minmetals Corp., has been seeking expansion opportunities beyond its core markets. This acquisition places MMG in direct competition with major nickel producers amid rising global demand for the metal, a critical component in electric vehicle batteries and stainless steel production.

Anglo American’s Strategic Overhaul

For Anglo American, the deal is part of a broader restructuring plan to streamline its operations. The company, a heavyweight on the FTSE 100, is offloading non-core assets to sharpen its focus on copper and iron ore.

Monday’s update revealed that Anglo American expects to finalize the spin-off of its South African platinum business by June. CEO Duncan Wanblad called the nickel sale a “milestone towards simplifying our portfolio” and increasing shareholder value.

“Today’s agreement, together with those signed in November to sell our steelmaking coal business, is expected to generate a total of up to $5.3 billion in gross cash proceeds, reflecting the high quality of our steelmaking coal and nickel businesses,” Wanblad stated.

A Market in Flux

The sale follows Anglo American’s rejection of a £38.6 billion ($48.6 billion) takeover bid from BHP Group last May, a move that signaled the company’s determination to chart its own course.

With the global commodities market shifting, MMG’s bet on nickel could pay off in a big way—if demand continues to soar. The company did not immediately respond to requests for comment, and Anglo American declined to elaborate on the deal.