Anglo American agrees to sell its Australian coal mines to Peabody

Peabody agreed to pay up to $3.775bn: $2.05bn at completion, $725m deferred, up to $550m in a price-linked earn-out and $450m if the Grosvenor mine reopens. With the earlier sale of its Jellinbah stake, Anglo expected up to $4.9bn from leaving steelmaking coal.

Why it matters. Deferred payments and earn-outs bridge the gap between what a seller hopes for and what a buyer will pay up front.

Source

Anglo American

In the course

Module 9: The M&A process