Analysts Still See Peabody As Suitor For Aussie Coal Assets

Peabody Energy BTU, the largest U.S. coal producer, still has its name tossed around as a viable suitor for Australian coal companies that could succumb to overtures from foreign bidders. The latest mention comes Southern Cross Equities, which says that Australia's Macarthur Coal, Whitehaven Coal and Aquila Resources all make for logical targets for foreign buyers. Peabody made several offers for Macarthur earlier this year, but was rejected each time. The U.S. coal giant has also been tied to Whitehaven as well, but no offers have been made public to date. Fueled by soaring demand from China and India, mergers and acquisitions activity in Australia's coal sector has been on a torrid pace this year. There have been $6.7 billion of coal acquisitions announced so far this year in Australia, exceeding the $5.9 billion for the whole of last year, according to data compiled by Bloomberg. Southern Cross said in its report that “...it is logical that Peabody comes back for Macarthur Coal at some stage. Learn how to find the best stocks to trade each day in our 70 page E-Book and 90 minute online video for free.