BofA Keeps Buy Rating on Anglo American Despite Coal Deal Cancellation

Bank of America has reaffirmed its "buy" rating for Anglo American after a coal deal fell through. Anglo American is a global mining company focused on copper, premium iron ore, and crop nutrients. It operates in the UK, South Africa, Brazil, and Australia, and has assets in copper, iron ore, coal, diamonds, and manganese. The company is developing the Woodsmith project in England and the Minas-Rio operation in Brazil.

Anglo American, a global mining company focused on copper, premium iron ore, and crop nutrients, has faced a setback following the cancellation of its planned acquisition of steelmaking coal assets by Peabody Energy. The deal, valued at £2.8 billion, was terminated due to a 'material adverse change' (MAC) linked to an explosion at the Moranbah North mine in Queensland, Australia [1][2].

The explosion, which occurred in March 2025, led to the mine's closure and has since remained shut. Peabody Energy cited the ongoing challenges at Moranbah North as the reason for pulling out of the deal, claiming that the circumstances constitute a MAC. However, Anglo American's CEO, Duncan Wanblad, maintains that the blast did not constitute a MAC and that the mine has made substantial progress towards a safe restart [1][2].

Despite the cancellation, Bank of America has reaffirmed its "buy" rating for Anglo American. The investment bank acknowledges the setback but remains optimistic about the company's long-term prospects. The cancellation of the deal does not appear to have significantly impacted Anglo American's overall financial health or its strategic plans [1][2].

Anglo American continues to focus on the safe resumption of operations at Moranbah North and the maximization of value from its entire steelmaking coal portfolio. The company is also advancing its Woodsmith project in England and the Minas-Rio operation in Brazil, which are key growth initiatives [1][2].

References:

[1] https://www.thisismoney.co.uk/money/markets/article-15015067/Anglo-American-suffers-3bn-blow-US-rival-pulls-deal-buy-Australian-coal-mines.html
[2] https://finance.yahoo.com/news/peabody-energy-terminates-acquisition-agreements-094646257.html