Anglo American Initiates Arbitration Proceedings After Peabody Deal Falls Through
By Connor Hart
Peabody Energy said Anglo American has initiated arbitration proceedings tied to the St. Louis coal producer's failed purchase of Anglo's steelmaking coal operations.
Peabody pulled out of the $3.78 billion deal in August, citing a material adverse change to the U.K. miner's steelmaking coal assets. Anglo had agreed to sell the business--including its Moranbah North mine--to Peabody in November. Four months later, however, Peabody said it was reviewing the deal after a fire at Moranbah North.
Upon calling off the deal, Peabody said the two parties were unable to reach a revised agreement that compensated the company for the long-term impact of the fire on the asset.
Anglo declined to comment. In August, the company said it would shortly initiate arbitration to seek damages for wrongful termination.
Peabody said in a filing with the Securities and Exchange Commission on Friday that it remains confident a material adverse change occurred, entitling it to terminate the purchase agreements.
Since calling off the deal, Anglo has returned $29 million of the $75 million deposit due to Peabody, the filing said. Peabody requested the outstanding payment be made without delay, it said.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
October 03, 2025 09:20 ET (13:20 GMT)
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