Duncan Wanblad's Anglo American Faces Hurdle In 3.5 Billion Deal
Anglo American's 3.5 billion coal asset sale to Peabody Energy faces delays due to a fire at Moranbah North Mine, casting doubt on deal completion.
The coal sale is part of Anglo American's broader strategy to simplify its portfolio, including plans to spin off its platinum unit and list De Beers.
Anglo Americans restructuring, amid a profit decline, includes job cuts and efforts to streamline operations, as the Peabody deals outcome remains uncertain.
Anglo American, the mining giant led by South African businessman Duncan Wanblad, is facing a significant challenge in its 3.5 billion sale of steelmaking coal assets to Peabody Energy Corp.
The deal, first announced in November 2024, now faces new hurdles following a disruptive fire at the Moranbah North Mine in Queensland, Australia, which has stalled operations and raised doubts about the completion of the transaction.
This disruption comes at a time when Anglo American is also undergoing a broader strategic overhaul, including the potential listing of its diamond business, De Beers . The coal asset sale was intended to simplify the companys portfolio, which also includes plans to sell nickel mines and spin off its platinum unit.
Peabody moves ahead with Anglo dealPeabody had agreed to pay Anglo 2.05 billion in cash upfront, with additional payments tied to factors like coal prices and the reopening of the Grosvenor mine, which had been shut down after a deadly explosion and fire in June. A company spokesperson confirmed that Anglo is working closely with Peabody to finalize the deal, despite the mines ongoing suspension.
The acquisition was expected to boost Peabodys position in the global seaborne steelmaking coal market. However, with demand for the fuel set to decline through 2027, according to the International Energy Agency IEA, Peabody had planned to shift its focus toward metallurgical coal. This move aligns with Anglos strategy to focus on its core commodities, following the rejection of a 49 billion takeover offer from BHP Group earlier this year.