Peabody Says Mine Fire Threatens $3.8 Billion Anglo Deal (2)

Peabody Energy Corp. is considering walking away from a $3.78 billion deal to acquire Anglo American Plc’ssteelmaking coal assets after a fire at an Anglo mine in Australia.

Peabody notified Anglo of a material adverse change affecting the planned takeover, according to a statement Monday. The issue involves the Moranbah North Mine in Australia, which remains shut following what Anglo described as a gas ignition event on March 31. Peabody shares gained as much as 6.2% in New York.

“The issues at Moranbah North have created significant uncertainty around the transaction,” Peabody Chief Executive Officer Jim Grech said in ...