Source: M&A Navigator
Article Date: 14/05/2009
US coal company Peabody Energy (NYSE:BTU) has signed an agreement with Australian White Energy Coal (ASX:WEC) to jointly develop a coal upgrading plant in the USA, Reuters said on 14 May 2009.
In addition, the agreement enables Peabody to acquire 15% in White Energy. Initially, the US company will buy a 4.9% stake in White Energy and when the plant is built in 2012, it will take over a further 10%.
The facility is expected to produce annually more than one million tonnes of upgraded coal in the first phase, but later could boost production to more than 20 million tonnes. The plant will be constructed at Peabody’s Powder River Basin site.
The agreement also gives Peabody the right to take part in new coal upgrading development projects of White Energy in North America and China.
Type: JV, Stake acquisition
Target: White Energy Coal Ltd
Buyer: Peabody Energy Corporation