Insight
Global coal M&A 2024: divergence in deal making
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
During 2023, there was a revival in deal making in coal industry driven by heightened concerns over the security of supply. A number of steel producers made strategic investments in met coal to secure long-term coal contracts and hedge against future price volatility. Meanwhile, diversified miners seeking to improve their ESG profiles by divesting coal assets have provided oppourtunities for pure play coal miners to expand and diversify into met coal. Deal-making in thermal coal remains subdued and limited to Indonesia where we see a small pool of buyers mostly seeking cost rationalisation through scale and synergies as well as shifting product mixes towards high-energy coal. Substantial cash generation over past 3 years has largely been used to improve balance sheets. Major industry players have US$ 14.3 bn in cash which could be redeployed back to opportunistic M&A.
Table of contents
- Executive summary
Tables and charts
This report includes the following images and tables:
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Coal industry have prioritised cash returns to shareholders with significant windfall cashflow generation over past 3 yearsCoal industry redeploying capital after degearing over past 3 yearsAcquisition spend by region
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No of deals by regionDeal pipeline value (by region)Deal pipeline by coal type and regionEV/resource by operating statusEV/reserves by type of coalNewcastle export thermal coal priceQueensland HCC coal spot price
What's included
This report contains:
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