Anglo to sell Australian coal mines to Peabody for up to $3.78 billion By Reuters
Written by Clara Denina and Melanie Burton
LONDON/MELBOURNE (Reuters) – Anglo American ( JO: ) agreed on Monday to sell its remaining Australian coal mines to Peabody Energy for up to $3.78 billion, the first investment in a wide-ranging restructuring plan.
The London-listed miner is reshaping its business to focus on itself after bowing out of a $49 billion takeover bid from arch-rival BHP in May, betting on scrap to boost value and fend off unwanted suitors.
Anglo’s share price was up 2.4% at 0829 GMT.
Peabody’s deal includes an upfront payment of $2.05 billion upon completion, a deferred cash consideration of $725 million and up to $550 million in leverage. It also includes an estimated $450 million related to the reopening of the Grosvenor mine after a fire broke out there in June, Anglo American said in a statement.
Portfolio manager Ben Cleary at Tribeca Investment Partners, whose firm lists Anglo as its largest holding company, said the miner had received a “good price”.
“A good amount of money and something deferred seems reasonable,” he added.
Peabody will buy Moranbah North, Grosvenor, Aquila, and Capcoal located in Australia’s Bowen Basin. Anglo’s Dawson mine will be sold for $455 million to the unit of Indonesia’s Delta Dunia Group that owns BUMA’s coal mining business, Peabody said.
The deal comes just days before a six-month freeze on BHP’s alternative ends on Friday under UK takeover rules, after Anglo objected to BHP three times.
Anglo had already divested a minority stake in a joint venture that owns the Jellinbah East and Lake Vermont coal mines in Australia, for $1.1 billion.
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Anglo’s restructuring plan also includes shedding underperforming platinum, nickel and diamond assets to focus on copper, a key metal for the clean energy transition and rapid expansion of artificial intelligence, metal and plant nutrients.
“We see potential for significant rebalancing in the medium term as Anglo launches its restructuring plan, leaving a simplified portfolio with 60 percent copper,” said Marina Calero, analyst at RBC Capital Markets.
“BHP’s renewed approach cannot be ruled out, with the end-of-November deadline fast approaching,” he added.
After coal, Anglo is expected to spin off its Anglo American Platinum unit in South Africa by mid-2025. Chief executive Duncan Wanblad also said he expects diamond giant De Beers to follow suit, as the group works to diversify that business.
“We have made good progress in delivering $1 billion in savings,” he said in a press release.
