US Coal Miner Peabody Targets World Steel Market With Anglo Deal
- Peabody in $3.8 billion deal to acquire Anglo’s coal assets
- Met coal exports will account for 74% of Peabody earnings
The Peabody Energy Francisco coal mine in Francisco, Indiana.
Photographer: Luke Sharrett/BloombergThis article is for subscribers only.
With US demand for coal waning, Peabody Energy Corp. has struck a deal to shift its focus on targeting growth in the global steel market.
Peabody, the biggest US coal miner, agreed to pay as much as $3.78 billion for four mines in Australia that supply metallurgical coal — a key ingredient in steelmaking. The agreement with Anglo American Plc, announced Monday, will help Peabody almost triple its met coal output within two years, putting the St. Louis company on pace to be the world’s third-biggest exporter.