Latest news with #JimGrech
Yahoo
2 days ago
- Business
- Yahoo
Peabody Energy terminates acquisition agreements with Anglo American
Peabody Energy has called off its planned acquisition of Anglo American's steelmaking coal (SMC) assets, citing a material adverse change (MAC) linked to unforeseen challenges at the Moranbah North Mine. The cancellation comes after an ignition event at the mine nearly five months ago, with the cause still undetermined and no clear timeline for resuming sustainable longwall production. Peabody president and CEO Jim Grech said: 'The two companies did not reach a revised agreement to cure the MAC that compensated Peabody for the material and long-term impacts of the MAC on the most significant mine in the planned acquisition. 'Peabody has chosen to terminate the transaction and will continue to execute our plans to create substantial value from our diversified global asset portfolio.' The acquisition, initially set to conclude in April 2025, faced uncertainty as Anglo American reported monthly holding costs of $45m at Moranbah North. The mine's projected output of 5.3 million tonnes (mt) of saleable production in 2025 remains in limbo, with no schedule for the return of longwall production at the anticipated volumes and costs. Anglo American CEO Duncan Wanblad said: 'We are confident in our belief that the event at Moranbah North in March does not constitute a MAC under the sale agreements with Peabody. Our view is supported by the lack of damage to the mine and equipment, as well as the substantial progress made with the regulator, our employees and the unions, and other stakeholders as part of the regulatory process towards a safe restart of the mine. "In fact, just in the last week we achieved a further important milestone, with our workforce signing off the risk assessment that underpins the restart strategy. We are therefore very disappointed that Peabody has decided not to complete the transaction. 'Despite our strongly held view, we believe that it would have been better for all parties to avoid a legal dispute," he said. Wanblad also emphasised that the company has put in considerable work and demonstrated considerable adaptability to reach an agreement with Peabody, suggesting changes and technical alternatives. However, following Peabody's choice to back out of the deal, the company's attention is now on safely resuming operations at Moranbah North and maximising the value from its entire SMC portfolio. Wanblad added: 'We continue to reserve our rights under the definitive agreements, we are confident in our legal position and will shortly initiate an arbitration to seek damages for wrongful termination." Furthermore, Peabody has also terminated a related sale agreement with PT Bukit Makmur Mandiri Utama for the Dawson Mine. Peabody is committed to distributing 65–100% of its available free cash flow to its shareholders, mainly via share repurchases, while also seeking organic growth through its vast asset base and upholding a robust balance sheet through strict capital management. "Peabody Energy terminates acquisition agreements with Anglo American" was originally created and published by Mining Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
ABC News
2 days ago
- Business
- ABC News
Peabody terminates $5.7b deal to buy five Bowen Basin mines citing March underground ignition
Global miner Peabody Energy has terminated a multi-billion-dollar agreement to buy five steelmaking coal mines in Queensland's Bowen Basin. The $5.7 billion deal, announced in November, would have seen the US-based miner acquire the mines from Anglo American. In a statement to investors late Tuesday Australian time, Peabody said it ended the deal after an ignition event at the Moranbah North mine in March. Peabody said the event constituted a "material adverse change", or MAC, which Anglo American disputed. Peabody chief executive Jim Grech said in a statement the "two companies did not reach a revised agreement to cure the MAC that compensated Peabody for the material and long-term impacts" of the ignition event. Mine owners Anglo American told markets it "firmly believed" the ignition on March 31 at Moranbah North did not constitute a MAC and said there was a "lack of damage" to the mine and equipment. Anglo American chief executive officer Duncan Wanblad said the company would "shortly initiate an arbitration" to seek damages for what it termed "wrongful termination". Moranbah North was one of five Bowen Basin mines that was part of the deal — the other four being Capcoal, Dawson, Aquila and Grosvenor. Anglo American provides housing, a shopping centre, childcare, and a medical centre for the purpose-built town of Middlemount that services surrounding mines. Issac mayor Kelly Vea Vea described the transaction of five mines and associated infrastructure as "huge." "This is basically the buying and selling of communities at this particular point," she said. She said the Isaac Regional Council had been working with Anglo American since the sale was announced last year to catalogue the broader social investments the company had made into communities including water infrastructure for the towns of Middlemount and Moranbah. The Mining and Energy Union said it would work with Anglo American to understand the situation in what Queensland president Mitch Hughes said was an uncertain time. "Our focus is on getting clear information from Anglo American," he said. Anglo American told investors it had "unsolicited inbound interest" expressed to it in recent months, and it was confident it would conclude an "alternative sales process" in due course.
Business Insider
2 days ago
- Business
- Business Insider
M&A News: Peabody Stock (BTU) Is Shelled as it Scraps $3.8B Anglo American Coal Deal
Shares in coal giant Peabody Energy (BTU) collapsed nearly 2% today as it scrapped its planned $3.8 billion acquisition of Anglo American's (NGLOY) Australian coking coal assets. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Fire Alert Peabody had agreed to buy the mines based in Queensland's Bowen Basin but changed its mind after an underground fire halted operations at the Moranbah North mine in March. The fire was reportedly caused by high gas levels at the site. However, in its statement today Peabody said that the exact cause of the event remains unknown, with no definitive timeline to resuming production at the site. Peabody had invoked a clause allowing it to walk away from the deal – which had been due to close in April – or renegotiate if a major adverse event, like the fire, took place between the signing of the deal and completion. 'The two companies did not reach a revised agreement to cure the MAC (material adverse change) that compensated Peabody for the material and long-term impacts of the MAC on the most significant mine in the planned acquisition,' said Peabody President and Chief Executive Officer Jim Grech. Arbitration Fight Anglo, which is selling or spinning off assets following rival BHP's (BHP) failed takeover attempt last year, said that it would 'shortly initiate an arbitration to seek damages for wrongful termination,' disputing that the fire and mine closure constituted a material adverse change, due to the lack of damage to the mine or equipment and progress made towards restarting it. 'We are therefore very disappointed that Peabody has decided not to complete the transaction,' said Anglo's CEO Duncan Wanblad. However, he added that given strong interest for the assets during the bidding process, he is confident an alternative buyer can be found through a new sales process. As seen above, Peabody stock is down 18% in the year-to-date hit by weaker global coal prices, the global economy and uncertainty over President Trump's tariff strategy. The long-term picture for coal producers is also murky given the push to cleaner energy supplies. Is BTU a Good Stock to Buy Now? On TipRanks, BTU has a Moderate Buy consensus based on 3 Buy and 2 Hold ratings. Its highest price target is $23. BTU stock's consensus price target is $18.66, implying a 9.83% upside.
Yahoo
06-05-2025
- Business
- Yahoo
Peabody may terminate Anglo American coal assets acquisition over mine fire
US-based coal producer Peabody Energy has raised concerns over its planned acquisition of Anglo American's Tier 1 Australian steelmaking coal assets, citing a material adverse change (MAC) related to the Moranbah North coal mine in Queensland's Bowen basin in Australia. The mine, part of the acquisition, has been inactive since a gas ignition event on 31 March 2025. Peabody indicated that it may withdraw from the agreement if the issues are not resolved within a specified time frame. Last month, Peabody Energy announced that it was reviewing its options regarding the acquisition after the mine fire. Peabody president and CEO Jim Grech said: 'While we have remained on track to complete the steelmaking coal acquisition from Anglo, the issues at Moranbah North have created significant uncertainty around the transaction. "A substantial share of the acquisition value was associated with Moranbah North, yet there is no known timetable for resuming longwall production." Meanwhile, Anglo American has countered by stating that the production halt does not constitute a MAC, based on the definitive agreements signed with Peabody in November last year. Anglo American said in a statement: 'Initial re-entry to Moranbah North mine was completed on 19 April 2025 and Anglo American is continuing to work closely with the safety regulator, Resources Safety & Health Queensland, industry experts and other key stakeholders as we progress towards a structured restart to longwall production once it is determined that it is safe to do so. 'As a result of the progress made to date towards a safe restart and the information available, Anglo American does not believe that the stoppage at Moranbah North constitutes a Material Adverse Change in accordance with the definitive agreements with Peabody. 'Anglo American expects to continue working with Peabody towards addressing its concerns and satisfying the remaining customary conditions in those agreements that are required for completion of the transaction.' "Peabody may terminate Anglo American coal assets acquisition over mine fire" was originally created and published by Mining Technology, a GlobalData owned brand.
Malaysian Reserve
05-05-2025
- Business
- Malaysian Reserve
Peabody Notifies Anglo American of Material Adverse Change Impacting Planned Acquisition
ST. LOUIS, May 5, 2025 /PRNewswire/ — Peabody (NYSE: BTU) announced today that it has notified Anglo American Plc of a Material Adverse Change (MAC) impacting Peabody's planned acquisition of steelmaking coal assets from Anglo. The MAC relates to issues involving the Moranbah North Mine, which remains inactive following what was described as a gas ignition event on March 31, 2025. 'While we have remained on track to complete the steelmaking coal acquisition from Anglo, the issues at Moranbah North have created significant uncertainty around the transaction,' said Peabody President and Chief Executive Officer Jim Grech. 'A substantial share of the acquisition value was associated with Moranbah North, yet there is no known timetable for resuming longwall production.' If the MAC is not resolved to Peabody's satisfaction in the limited timeframe specified under the companies' acquisition agreements, Peabody may elect to terminate the agreements. Peabody is a leading coal producer, providing essential products for the production of affordable, reliable energy and steel. Our commitment to sustainability underpins everything we do and shapes our strategy for the future. For further information, visit CONTACT:Vic Svecir@
