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Peabody reviews options for $3.78 bln deal for Anglo's coal assets
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Peabody reviews options for $3.78 bln deal for Anglo's coal assets
Apr 9, 2025 1:13 AM

LONDON, April 9 (Reuters) - Peabody Energy ( BTU ) is

reviewing all options related to its $3.78 billion acquisition

agreement with Anglo American for some of its Australian

steelmaking coal assets after a fire halted production at a mine

included in the deal.

The deal was signed last year and expected to close in

mid-2025.

Production at Anglo American's Moranbah North coal mine -

located in the Bowen basin in Queensland, Australia - was

suspended after an underground fire broke out at the mine last

week.

Peabody said on Tuesday it was in conversation with Anglo

American to better understand the impacts of the event and would

preserve all rights and protections under its purchase

agreements.

Anglo American said it was providing information to Peabody

on the suspension at Moranbah North.

"At the mine, conditions remain stable as we progress with

developing our staged re-entry management plan and risk

assessment," it said in an emailed statement on Wednesday.

U.S.-based coal producer Peabody said it had engaged in

preliminary discussions with potential investors regarding

permanent financing for the acquisition.

Peabody's deal for Anglo American's assets included an

upfront payment of $2.05 billion at completion, deferred cash

consideration of $725 million and another potential $550

million. It also included a contingent cash consideration of

$450 million linked to the reopening of the Grosvenor mine,

after another fire broke out there in June, ahead of the

acquisition.

Anglo American's Peabody deal was its first major divestment

in a wider restructuring plan. The London-listed company, which

last year fended off a $49 billion takeover bid from the world's

biggest miner BHP Group ( BHP ), has agreed to sell its nickel

and coal assets and is in the process of divesting platinum and

diamonds to focus on copper and iron ore.

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