Anglo American's Coal Exit Plan in Jeopardy After Peabody Backs Out of $3.8B Deal

Peabody Energy has pulled out of a $3.8 billion deal to acquire Anglo American's steelmaking coal assets due to a fire at Moranbah North. Anglo disagrees and is seeking arbitration, while Peabody wants its $75 million deposit back. Anglo's pivot away from coal has been delayed, and a new buyer for the assets may not come with favorable terms. The dispute may lead to a drawn-out arbitration, complicating Anglo's plans to exit the coal business.