US-based coal producer Peabody Energy is reviewing its options regarding the $3.78bn (£2.93bn) acquisition of Anglo American’s Tier 1 Australian steelmaking coal assets, announced in November last year.
The move follows a fire last week that halted production at the Moranbah North coal mine, which is included in the deal.
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The acquisition was set to be closed by mid-2025.
Peabody stated that it was in discussions with Anglo American to ascertain the consequences of the incident and intended to maintain all rights and protections stipulated in the purchase agreements.
Anglo American has been cooperative, providing Peabody with details on the suspension at Moranbah North, reported Reuters.
The company said in an emailed statement: “At the mine, conditions remain stable as we progress with developing our staged re-entry management plan and risk assessment.”
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By GlobalDataPeabody has also begun preliminary talks with potential investors for permanent financing of the acquisition.
The deal for Anglo American’s assets included a $2.05bn upfront payment upon completion, deferred cash consideration of $725m and potentially an additional $550m.
It also featured a contingent cash consideration of $450m linked to the reopening of the Grosvenor mine, which experienced a fire in June, prior to the acquisition.
Besides Moranbah North coal mine, the Grosvenor, Aquila and Capcoal coal mines in Queensland’s Bowen basin are also part of the acquisition.
This acquisition represents Anglo American’s first significant divestiture as part of a broader restructuring strategy.
The London-listed company, which last year rejected a $49bn (A$79.24bn) takeover bid from mining giant BHP Group, has committed to selling its nickel and coal assets.
It is also in the process of divesting from platinum and diamonds to concentrate on copper and iron ore sectors.
