Stock market today: Stocks fall as investors rotate out of tech into Jackson Hole
Investing.com -- Peabody Energy (NYSE:BTU) stock jumped 9% after the coal producer announced it has terminated its planned acquisition of Anglo American (JO:AGLJ) Plc’s steelmaking coal assets due to a material adverse change.
The decision comes nearly five months after an ignition event at Anglo’s Moranbah North Mine, with no definitive timeline for resuming sustainable longwall production. According to Peabody, the two companies failed to reach a revised agreement that would compensate for the "material and long-term impacts" on what was described as the most significant mine in the planned acquisition.
"Peabody’s portfolio is very well positioned, with growing exposure to seaborne metallurgical coal highlighted by our new 25-year premium hard coking coal Centurion Mine, a low-cost seaborne thermal coal platform, and a leading U.S. thermal coal position capitalizing on rising power generation demand," said Peabody President and CEO Jim Grech.
The acquisition had been scheduled to close in April 2025 before the March 31 incident. Anglo American reportedly faces approximately $45 million per month in holding costs at Moranbah North, which was previously expected to produce 5.3 million tons in 2025.
Peabody has also terminated the related agreement to sell the Dawson Mine to PT Bukit Makmur Mandiri Utama. The company stated it will continue executing its four-pronged strategy focused on safe operations, returning 65-100% of available free cash flow to shareholders, delivering organic growth, and maintaining a resilient balance sheet.
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