HK Stock Market Move | After resuming trading, MMG (01208) fell more than 5%. It plans to acquire the Brazilian nickel business of Anglo American for a maximum price of 500 million US dollars.

After resuming trading, MMG (01208) fell more than 5% and, as of the time of writing, fell 4.1% to 2.57 Hong Kong dollars, with a trading volume of 50.6086 million Hong Kong dollars. On the news front, Anglo American Resources Group announced that it will sell its Brazilian nickel business to MMG's wholly-owned subsidiary MMG Singapore Resources, with a maximum cash consideration of $500 million. The transaction is expected to be completed in the third quarter of this year. MMG stated that after the completion of the transaction, the target business will be fully owned by the group, and the group's consolidated financial statements will incorporate its financial performance, assets, and liabilities. It is reported that the target group is one of the world's largest and lowest-cost nickel-iron producers. MMG stated in the announcement that the acquisition is in line with the group's strategy to expand revenue, regional coverage, and growth in basic metal product varieties. This marks the group's first investment in Brazil and adds nickel to its mineral resources and ore reserves. The project supports the group's strategy of diversified development, reinforces the group's position in existing regions, leverages the group's capabilities and experiences for synergies, and executes at the counter-cyclical point in the market cycle.