Anglo coal deal could be pushed back “significantly”, says bank

ANGLO American’s chances of closing the sale of its metallurgical coal assets to Peabody Energy had been dealt a blow, according to a report by US investment firm Jefferies.Cited by Reuters in a report on Monday, Jefferies said Peabody’s issue of a Material Adverse Change (MAC) regarding its purchase of coal mines including the suspended Moranbah North operation could “significantly” push back the closing of the transaction. It could even affect the “likelihood of this transaction going through at all”, Reuters quoted Jefferies as saying.Production at Anglo American’s Moranbah North coal mine – located in the Bowen basin in Queensland, Australia – was suspended after an underground fire broke out at the mine in March.The mine is included in the assets deal signed between the companies last year.A MAC clause refers to a significant negative development affecting the target company between the signing and closing of a deal, potentially allowing the buyer to terminate the agreement, said Reuters.“A substantial share of the acquisition value was associated with Moranbah North, yet there is no known timetable for resuming longwall production,” Peabody CEO Jim Grech said in a statement.Peabody said it may walk away from the deal, if the issues at the mine were not resolved within the timeframe specified under the acquisition agreements.Anglo American in response said it does not believe production stoppage at the mine constitutes a Material Adverse Change to its agreed upon deal with Peabody. It will continue to work with Peabody to satisfy the remaining conditions required to complete the deal, Anglo added.The post Anglo coal deal could be pushed back “significantly”, says bank appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com