Anglo American (UK:AAL) on Monday said it's reached a deal to sell its steelmaking coal business to Peabody Energy (BTU) for up to $3.775 billion in cash. Peabody will pay $2.05 billion at completion, deferred cash of $725 million, and further incentives based on revenue above coal price targets and the reopening of the Grosvenor mine. "All the transactions to deliver our portfolio transformation are well in train - the demerger of Anglo American Platinum is expected by mid-2025 and we have seen strong interest in our nickel business with the sale process well progressed," said Duncan Wanblad, chief executive of Anglo American, in a statement. Peabody said the deal will increase its metallurgical coal production from an estimated 7.4 million tons in 2024 to an expected 21 - 22 million tons in 2026.
-Steve Goldstein
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November 25, 2024 02:40 ET (07:40 GMT)
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