0545 GMT - The risk that Peabody's planned takeover of Anglo American's metallurgical coal assets fails has materially increased, according to Jefferies analyst Christopher LaFemina. "In the case of Anglo, this deal not closing would be a significant negative, as the value of these assets would have materially declined from the agreed transaction price," LaFemina says. For Peabody, it would be a positive, "as securing [circa] $2 billion of needed long-term financing in today's coal market environment would be very expensive," he says. Peabody's share price has fallen sharply since the deal was announced, and metallurgical coal prices have collapsed, says LaFemina. The up-to $3.78 billion deal has come under scrutiny after a recent fire at one of the mines Anglo American intends to sell. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

(END) Dow Jones Newswires

May 07, 2025 01:45 ET (05:45 GMT)

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