Peabody Energy reviewing options related to deal with Anglo American
me-metals: Peabody Energy 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.
According to me-metals cited from mining.com, 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.
US-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, 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.
source: mining.com
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