Latham Advises Anglo American on US$3.775 Billion Sale of Australian Steelmaking Coal Business

Latham & Watkins has advised Anglo American plc on its definitive agreements to sell its steelmaking coal business, the portfolio of steelmaking coal mines it operates in Australia (Steelmaking Coal Portfolio), to Peabody Energy for a cash consideration of up to US$3.775 billion.

Peabody Energy (Peabody) has agreed to acquire the Steelmaking Coal Portfolio for a cash consideration of up to US$3.775 billion. This amount comprises an upfront cash consideration of US$2.05 billion at completion, deferred cash consideration of US$725 million over four years after completion, the potential for up to US$550 million in a price-linked earnout payable over five years, and contingent cash consideration linked to the restart of the Grosvenor mine amounting to US$450 million. The transaction is subject to a number of conditions, including customary competition and regulatory approvals. Completion is expected in the third quarter of 2025.

Together with the agreed sale of Anglo American's interest in Jellinbah, which Latham also advised on earlier this month, the sale of the Steelmaking Coal Portfolio delivers up to US$4.8 billion in aggregate cash proceeds to Anglo American.

The Latham team was led by London corporate partners Sam Newhouse, Emily Cridland, and Ed Barnett, with associates Harry Redford, Emily Smith, Alayna Kenney, Beatrice Leung, and George Venables. Advice on US finance matters was provided by Los Angeles partner Mark Morris and Washington, D.C. partners Jason Licht and Christopher Bezeg; on tax matters by London partner Helen Lethaby, with associates Sam Duncan and Isabella Wong; on regulatory matters by Brussels/London partner David Little, with associates James Mathieson and Oscar Haywood; and on transitional services matters by London partner Christian McDermott, with associate Grace Erskine.