Anglo American Exits Coal With $3.8B Sale To Peabody Energy
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 25 2024
0mins
Source: investopedia.com
Anglo American's Sale: Anglo American is selling its steelmaking coal assets to Peabody Energy for up to $3.8 billion as part of a business restructuring after rejecting takeover bids from BHP.
Market Reaction and Future Plans: The sale boosted Anglo American's stock by nearly 2%, while Peabody's shares fell 7%. The deal is expected to close in Q3 2025, with Anglo American continuing plans to restructure other units.
Analyst Views on BTU
Wall Street analysts forecast BTU stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for BTU is 29.14 USD with a low forecast of 24.00 USD and a high forecast of 34.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Analyst Rating
3 Buy
2 Hold
0 Sell
Moderate Buy
Current: 36.060
Low
24.00
Averages
29.14
High
34.00
Current: 36.060
Low
24.00
Averages
29.14
High
34.00
About BTU
Peabody Energy Corporation is a coal producer, providing essential products for the production of reliable energy and steel. The Company owns interests in coal mining operations located in the United States and Australia, including interests in Middlemount Coal Pty Ltd. The Company engages in the direct and brokered trading of coal and freight-related contracts. Its segments include Seaborne Thermal, Seaborne Metallurgical, Powder River Basin, Other U.S. Thermal, and Corporate and Other. The Seaborne Thermal operations consist of mines in New South Wales, Australia. The mines in that segment utilize both surface and underground extraction processes to mine low-sulfur, high Btu thermal coal. The Seaborne Metallurgical operations consist of mines in Queensland, Australia, one in New South Wales, Australia and one in Alabama, the United States. The Company owns the southern portion of the Wards Well tenement.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
