Peabody Energy is contemplating withdrawing from its $3.3 billion acquisition of Anglo American's Australian coal mines due to a "material adverse change" following a significant explosion at the Moranbah North mine. This mine, a key asset in the deal, remains inactive, casting uncertainty on the transaction's completion.
The company had arranged a $2 billion bridging loan from KKR and Jefferies, with plans to refinance through secured notes, loans, equity, and asset sales. However, recurring accidents, such as recent fires at Moranbah North and Grosvenor mines, have cast doubts on operational stability, raising speculations about Peabody's potential withdrawal from the deal.
Despite these challenges, the agreement is reportedly legally binding, and exiting could incur significant legal costs.Analysts suggest Peabody may proceed with the acquisition and later sell off assets, even at a loss, to maintain liquidity.
Vietnam Steel by Hoa Sen Group
