Peabody, Australias Coronado end talks over potential merger

SYDNEY Coronado Global Resources Inc. and Peabody Energy Corp. mutually agreed to end talks over combining to create a new global coal giant.

Australia-listed Coronado CRN, -7.05%, which also has operations in the U.S., and Peabody BTU, +13.21% on Monday both said they had ended discussions over a combination that would have created a company worth about $6 billion.

Neither company gave a reason for the failure of the talks. Coronado announced the development in a filing to the Australian Securities Exchange. Peabody, the largest U.S. coal producer, confirmed in an emailed statement. Neither Peabody nor Coronado had disclosed terms of any potential merger.

The mooted tie-up had been seen as an indicator of how the coal-price surge that followed Russias invasion of Ukraine is transforming the sectors fortunes. However, Newcastle coal futures, the main Asian benchmark, have declined about 15% since Coronados Oct. 12 filing to the Australian Securities Exchange confirming merger talks.

At around $350 a metric ton, Newcastle coal futures are still more than double their level at the beginning of the year, according to FactSet.