Anglo to Sell Its Coal Business in $3.8 Billion Peabody Deal

  • Peabody to triple met coal output with deal for five mines
  • Sale of coal operations is first step in Anglo restructuring

Anglo American has agreed to sell its portfolio of steelmaking coal mines in Australia to Peabody Energy.

Photographer: Ferley Ospina/Bloomberg

Anglo American Plc agreed to sell its steelmaking coal business to Peabody Energy Corp. for a fee that could rise to as much as $3.78 billion, as the miner’s restructuring gathers pace.

Anglo is looking to dramatically simplify — and shrink — its business in a move that was announced during a successful rebuttal of a $49 billion approach from BHP Group earlier this year. For Peabody, the deal will significantly shift its product mix as the US miner seeks to focus on metallurgical coal.