03:46 AM EST, 11/25/2024 (MT Newswires) -- Peabody Energy ( BTU ) said Monday it has agreed to acquire steelmaking coal assets in Australia from Anglo American for cash consideration of $2.32 billion, plus up to $1 billion in contingent payments.

Proceeds to Anglo would also include $455 million from the acquisition of Dawson Mine by PT Bukit Makmur Mandiri Utama in a back-to-back deal, Peabody said.

The $2.32 billion cash consideration consists of about $1.7 billion at closing and $625 million in deferred payments, Peabody said.

The deal includes four metallurgical coal mines, including Moranbah North, Grosvenor, Aquila and Capcoal, located in Australia's Bowen Basin.

The acquisition is expected to boost Peabody's metallurgical coal production to 21 million to 22 million tons in 2026 from an estimated 7.4 million tons in 2024. The company also expects synergy opportunities of about $100 million per year.

Closing of the deal is expected in mid-2025, subject to certain conditions.