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Global coal M&A activity January 2020: thermal divisions under scrutiny

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10 January 2020

Global coal M&A activity January 2020: thermal divisions under scrutiny

Report summary

The 2019 collapse in coal sector deal-making surprised, although a decline was expected following a US$14 billion splurge over the previous two years. We estimate global coal spend (ex. China and India) fell to US$1.8 billion, a staggering 77% decline, while the number of deals nearly halved to 19. Falling coal prices and growing uncertainty in the outlook made it more difficult for sellers to realise target values and secure deals for the fewer, but lower quality assets that remained in the pipeline. Buyers remained wary, with M&A remaining lower in the capital allocation pecking order as investors called for higher returns, dividends and share buybacks. 2020 could see further announcements of planned divestment or spinoff of thermal coal assets or divisions by BHP, Anglo American, Sasol and others in an accelerated and strategic shift away from the commodity. Read the report to find out about: • 2019 deal list • Potential buyers and sellers in the pipeline

Table of contents

  • Thermal coal: US companies trade liabilities
  • Coking coal: project investment remains in focus
  • Outlook for 2020: thermal coal divisions under scrutiny in energy transition

Tables and charts

This report includes 4 images and tables including:

  • Deal-implied long-term benchmark thermal coal prices v Newcastle (6,000 nar) export thermal coal spot price
  • Deal-implied long-term benchmark metallurgical coal prices v Queensland HCC coal spot price
  • Deal pipeline value (by region)
  • Number of assets in pipeline by coal type and region

What's included

This report contains:

  • Document

    global coal ma activity December 2019.xls

    XLS 2.60 MB

  • Document

    Global_coal_deal_pipeline_December_2019.xls

    XLS 9.14 MB

  • Document

    Global coal M&A activity January 2020: thermal divisions under scrutiny

    ZIP 9.88 MB

  • Document

    Global coal M&A activity January 2020: thermal divisions under scrutiny

    ZIP 9.88 MB

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