Waldo Schmegers/Getty Images via Bloomberg
Takeaways from the Key Notes
- Anglo American sells its remaining assets in the steelmaking coal sector to Peabody Energy, a U.S. company for up to $3.8 Billion.
- Anglo American is restructuring after rejecting BHP's multiple attempts to take it over.
- Peabody stated that the Australian coal assets will help it to meet Asian steel demand.
Anglo American sells its remaining steelmaking assets to Peabody Energy for as much as $3.8 billion. The London-listed mining company is restructuring its business following the rejection of several takeover offers 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 companies stated that the deal is still subject to regulatory approvals, and it’s expected to close by the third quarter 2025.
“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 said that plans for restructure, and selling the nickel unit and De Beers diamonds 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 emerged from bankruptcy in seven years and said that the assets will help it meet the demand for steel from Asia. Asia has been driving the majority of global demand over the last decade.
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