Peabody Energy's Coal Deal in Jeopardy After Fire Incident at Moranbah North Mine

Peabody Energy is reassessing its $3.775 billion deal to acquire Anglo American's steelmaking coal assets after a fire incident at the Moranbah North Mine. The deal includes a $2.05 billion upfront payment, $725 million in installments, and a $1 billion kicker tied to favorable conditions. The ignition event puts future production and valuation in question, especially the earnout portion. Investors should watch how Peabody handles the fallout, and Anglo American's cash-upfront may still clear, but the $1 billion earnout is hanging in the balance.