Coal M&A September 2022: Deal implied prices remain subdued Report

Insight 14 September 2022

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Report summary

A US$1.3 billion surge in deal-making over the course of August 2022 has not seen a lift in deal implied pricing. Adoption of decarbonisation goals could drive sellers to accept lower transaction prices than would otherwise be the case, and they also may have a more bearish view of the future prospects for coal than buyers. This is supporting M&A deals in an environment of record and volatile coal prices making valuation of assets problematic.

Executive summary
- Deals highlight the ongoing impact of decarbonisation strategies, and recycling of capital to enhance value
- Indonesia: ABM Investama agree to purchase 30% stake in Golden Energy Mines
- Indonesia: Astrindo Nusantara Infrastruktur to acquire Thailand's PTT coal assets
- Australia: New Hope acquires 15% stake in Malabar Resources to increase near-term supply options
- Australia: M Resources joins bidding for Australia Pacific Coal
- Australia: Stanmore moves to 100% in SMC with the acquisition from Mitsui

Tables and charts

This report includes 2 images and tables including:

Deal-implied long-term benchmark thermal coal prices vs Newcastle (6,000 nar) export thermal coal spot price
Deal-implied long-term benchmark HCC coal prices v Queensland HCC coal spot price