South32 Drops Plan to Buy Peabody Mine
April 17 2017 - 7:19PM
Dow Jones News
By David Winning
SYDNEY--South32 Ltd. (S32.AU) said competition concerns had
scuttled a US$200 million deal to buy a metallurgical coal mine in
the southern coalfields of Australia's New South Wales state,
together with a stake in a coal port, from Peabody Energy Corp.
(BTU).
South32, the coal and metals miner spun out of BHP Billiton Ltd.
(BHP.AU) in 2015, agreed in November to buy Peabody's Metropolitan
Colliery and an associated 17% stake in the Port Kembla Coal
Terminal, located south of Sydney.
On Tuesday, South32 said the deal won't proceed following the
Australian Competition and Consumer Commission's concerns that the
proposed deal may substantially reduce competition in coal supply
to Australian steelmakers.
"South32 has always maintained that metallurgical coal is a
globally traded commodity," the company said in a regulatory
filing. "Given this, South32 is not prepared to make significant
concessions in favor of Australian steelmakers that would likely be
required to mitigate the competition concerns."
Write to David Winning at david.winning@wsj.com
(END) Dow Jones Newswires
April 17, 2017 19:04 ET (23:04 GMT)
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