Peabody Energy (NYSE:BTU) -7.2% in Monday's trading after it agreed to buy Anglo American's (OTCQX:AAUKF) (OTCQX:NGLOY) coal business for nearly $3.8B, even while analysts appear to react positively to the deal.

Anglo American signed a deal to sell its remaining steelmaking coal assets to U.S. miner Peabody Energy for up to $3.8 billion, the first major step in its large-scale business reshaping.

With US demand for coal waning, Peabody Energy Corp. has struck a deal to shift its focus on targeting growth in the global steel market.

The company is paying up to $3.8 billion in cash for the Anglo assets, which Peabody said will increase its metallurgical coal production to as much as 22 million tons in 2026 from an estimated 7.4 million tons in 2024,

Anglo American’s deal sits in line with the mining company’s plans to refocus its business on copper, iron ore and crop nutrients.

Anglo American is selling its remaining steelmaking coal assets for up to $3.8 billion to U.S. firm Peabody Energy, as the London-listed mining giant restructures its business after rejecting several takeover bids by rival BHP.

Anglo American (LSE:AAL,OTCQX:AAUKF) said on Monday (November 25) that it has entered into definitive agreements to sell its entire steelmaking coal business in Australia to Peabody Energy (NYSE:BTU).