Anglo American exits coal by selling it to Peabody Energy for $3.8 billion

Anglo American is selling nearly $3.8 billion of its remaining coal steel assets to US firm Peabody Energy (BTU) as the London-listed mining giant restructures its business after rejecting several takeover bids from rival BHP.

News of the sale of Anglo American’s steel coal mines in Australia lifted the company’s shares nearly 2% in London trading, while shares of Missouri-based Peabody fell 7% in premarket trading. The deal is subject to regulatory approval and is expected to close in the third quarter of 2025, the companies said.

“The sale of our steel coal business is another important step towards delivering on the strategy we set out in May to create a world-class copper, premium iron ore and crop nutrition business,” the chief executive said. (CEO) Anglo American Duncan Vanblad. Vanblad added that plans to restructure and sell De Beers’ nickel, platinum and diamond division are still progressing.

The news comes just days before BHP’s standstill agreement expires

Anglo American’s exit from steelmaker coal comes as the London-based mining giant seeks to cut its costs after it rejected BHP’s third takeover bid worth around $50 billion on May 29.

Under rules governed by the UK’s takeover code, BHP is barred from making a new bid for Anglo for six months, a deadline that ends in the coming days.

Peabody, which emerged from bankruptcy seven years ago, said the assets would help it meet demand from Asia, which has provided most of the world’s steel demand over the past decade.