Peabody Energy (BTU) is currently reevaluating its planned acquisition of steelmaking coal assets from Anglo American (NGLOY) following an incident at the Moranbah North Mine last week. The event has prompted Peabody to consider its options, including potentially withdrawing from the deal or renegotiating terms, if the situation constitutes a "material adverse change" in the assets' valuation.
This development is viewed favorably for Peabody Energy, as it provides potential leverage in the transaction. Conversely, the implications are negative for Anglo American, making the company potentially more susceptible to acquisition interest from rivals such as BHP Group (BHP).
Jefferies has maintained a Buy rating for Peabody Energy with a target price set at $18 per share.
