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South32 walks away from deal to buy Peabody mine

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San Francisco - South32 [JSE:S32] is ditching the first major deal it made since spinning off from BHP Billiton [JSE:BIL] in 2015.

The Perth-based company said ON Tuesday that it’s walking away from a planned takeover of Peabody Energy’s Metropolitan Colliery coal mine and its minority stake in the Port Kembla coal export terminal, both in Australia.

It had agreed to pay at least $200m for the assets last year, but Australian regulators raised concerns about the sale weakening competition among coal suppliers to domestic steelmakers. South32 said in a statement that it wasn’t willing to make concessions.

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