Anglo American to sell steelmaking coal business for $4.9b
Anglo American announced on Monday a significant deal to sell its entire steelmaking coal business to Peabody Energy for up to $4.9 billion, which will generate substantial cash proceeds for the mining giant.
Peabody’s agreed cash consideration of up to US$3.775 billion. The amount comprises an upfront cash consideration of US$2.05 billion at completion; deferred cash consideration2 of US$725 million; the potential for up to US$550 million in a price-linked earnout3; and contingent cash consideration4 of US$450 million linked to the reopening of the Grosvenor mine.
“The sale of our steelmaking coal business is another important step towards delivering the strategy that we set out in May to create a world class copper, premium iron ore and crop nutrients business,” said Chief Executive of Anglo American.
Attribution: Anglo American report
Subediting: M. S. Salama
