KEY TAKEAWAYS
- Anglo American is selling its remaining steelmaking coal assets for up to $3.8 billion to U.S. firm Peabody Energy.
- Anglo American is restructuring after rejecting BHP’s multiple attempts to take it over.
- Peabody said the Australian coal assets would help it meet Asian demand for steel.
Anglo American is selling its remaining steelmaking coal assets for up to nearly $3.8 billion to U.S. firm Peabody Energy, as the London-listed mining giant restructures its business after rejecting several takeover bids by rival BHP.
The news of the sale of Anglo American’s steelmaking coal mines in Australia lifted the company’s stock almost 2% in London trading, while shares of Missouri-based Peabody are falling 7% in premarket trading.
The deal is subject to regulatory approvals and expected to close in the third quarter of 2025, the companies said.
“The sale of our steelmaking coal business is another important step towards delivering the strategy that we set out in May to create a world class copper, premium iron ore and crop nutrients business,” Anglo American Chief Executive Officer (CEO) Duncan Wanblad said.
Wanblad added that plans to restructure and sell the nickel, platinum and De Beers diamond unit are still on track.
News Comes Just Days Before BHP’s Standstill Agreement Expires
Anglo American’s exit from steelmaking coal comes as the London-based mining giant aims to shrink after turning down BHP’s third takeover offer, valued at roughly $50 billion, on May 29.
As set out by rules governed by the U.K. takeovers code, BHP is not allowed to make a new bid for Anglo for six months—a deadline that ends in coming days.
Peabody, which emerged from bankruptcy seven years ago, said the assets would help it cater to demand from Asia, which has driven most of the global steel demand in the past decade.
Source: NISHA GOPALAN, Investopedia
