Peabody announced an acquisition of world-class metallurgical coal assets from Anglo American plc last week, significantly strengthening Peabody’s position as a leading global supplier of steelmaking coal. The transaction, valued at USD 3.8 billion, is set to close in mid-2025, subject to regulatory approvals and customary closing conditions.
The acquisition includes four Tier 1 metallurgical coal mines in Queensland’s Bowen Basin—Moranbah North, Grosvenor, Aquila, and Capcoal—renowned for producing premium hard coking coal essential to steelmaking. The mines are projected to produce approximately 11.3 million tons in 2026, positioning Peabody to meet growing demand across key Asian markets.
Peabody President and CEO Jim Grech hailed the deal as a “rare opportunity to acquire premier assets at a compelling valuation” that aligns with the company’s strategic focus on seaborne metallurgical coal. He noted that the transaction would be “immediately accretive, highly synergistic, and transformative for Peabody’s future.”
The transaction is expected to bolster Peabody’s financial profile by generating significant cash flow and achieving substantial synergies of approximately $100 million annually through efficiency improvements. With an average mine life exceeding 20 years and substantial reserves, the acquisition elevates Peabody’s metallurgical coal output from 7.4 million tons in 2024 to over 21 million tons in 2026.
Anglo American Chief Executive Duncan Wanblad expressed confidence in Peabody’s stewardship of these assets, stating, “We are delighted to collaborate with Peabody to ensure a successful transition that benefits all stakeholders.”
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