Anglo American Exits Coal With $3.8B Sale To Peabody Energy | Global News Avenue

Anglo American is selling its remaining steel-making coal assets to US company Peabody Energy for nearly $3.8 billion.BTU), a London-listed mining giant Reorganization after its business reject Multiple takeover bids from rival BHP Billiton.

News of the sale of Anglo American’s steel-making coal mines in Australia sent the company’s shares up nearly 2% in London trading, while Missouri-based Peabody’s shares fell 7% in pre-market trading. The deal, which is subject to regulatory approval, is expected to close in the third quarter of 2025, the companies said.

Anglo American said: “The sale of our steelmaking coal business is another important step in delivering on the strategy we set out in May to create a world-class copper, high-quality iron ore and crop nutrients business.” Chief Executive Officer (CEO) Duncan Wamblade said. Wanblad added that plans to restructure and sell off the nickel, platinum and De Beers diamond divisions were still underway.

The news comes just days before BHP’s moratorium agreement expires

Anglo American’s exit from the steel-making coal business comes as the London-based mining giant plans to downsize after rejecting BHP Billiton’s third takeover bid on May 29, worth about $50 billion.

Under UK takeover law, BHP is prohibited from making a new takeover bid for Anglo American for six months – a period that is due to end in the coming days.

Peabody, which emerged from bankruptcy seven years ago, said the assets would help meet demand in Asia, which has driven much of the world’s steel demand over the past decade.