Two multinational mining companies are considering whether to combine their global operations, insiders said.
Speculation is growing that US-headquartered Peabody Energy and Brisbane-based Coronado Global Resources could merge into a new, enlarged entity.
Each proponent made “no comment” about the accuracy of this information. However, sources claim consolidation talks are already underway in New York City.
“The nature of any merger and whether a plan is advanced is unclear,” News Limited reported.
“One scenario is where Peabody buys Coronado, allowing one of Coronado’s private equity holders that is keen for an exit to sell.”
Peabody previously declared chapter 11 bankruptcy and had a US$3.9 billion (A$6.2B) market value at the time of publication. Elliott Management has already sold 12 per cent of its interest in the proponent and retains an 18 per cent stake.
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