(Reuters) – Peabody Energy said on Tuesday it was reviewing all options related to its $3.78 billion acquisition agreement with Anglo American for some of its Australian steelmaking coal assets after an ignition event at a mine.
The acquisition deal was signed last year and was expected to close in mid-2025.
According to media reports, production at Anglo American’s Moranbah North mine – located in the Bowen basin in Queensland, Australia – was suspended after an underground fire broke out at the mine last week.
Peabody said it remains in conversation with Anglo American to better understand the impacts of the event and would preserve all rights and protections under its purchase agreements.
The U.S.-based coal producer added 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.
Anglo American did not immediately respond to a Reuters request for comment, on the fire and Peabody’s announcement, outside business hours.
Anglo American’s deal with Peabody was its first major divestment in a wider restructuring plan. The British company, which last year fended off a $49 billion takeover bid from BHP Group, is planning to shed its platinum, nickel, diamond and coal assets to focus on copper.
(Reporting by Vallari Srivastava in Bengaluru; Editing by Shinjini Ganguli)
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