Coal miner Coronado Global confirms merger talks with Peabody Energy

The logo and trading information for U.S. coal miner Peabody Energy Corp. are displayed on a screen on the floor of the NYSE, New York
The logo and trading information for U.S. coal miner Peabody Energy Corp. are displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., April 4, 2017. REUTERS/Brendan McDermid/File Photo

Oct 12 (Reuters) - Australian coal miner Coronado Global Resources (CRN.AX) confirmed on Wednesday it was in confidential discussions with Peabody Energy Corp (BTU.N) regarding a potential "combination transaction".

The Australian, citing sources, reported on Tuesday that discussions were happening in New York, but said there was no clarity on the nature of these talks.

As of Tuesday's close, Coronado had a market capitalization of A$3.26 billion ($2.05 billion), while U.S.-based Peabody was valued at $3.80 billion.

Stocks of both coal miners have sharply rallied this year, as customers from Europe to Asia scramble for alternative sources of fuel in the aftermath of the European Union's sanctions on gas-rich Russia.

Coronado had held merger talks with U.S.-based peer Arch Resources Inc (ARCH.N) earlier this year, but that didn't materialize into a deal.

Coronado, which owns coal mining facilities in Virginia and West Virginia state, said no agreement had been reached with Peabody and it did not divulge any details on a potential deal.

Peabody did not immediately respond to a Reuters request for comment.

($1 = 1.5936 Australian dollars)

Reporting by Harish Sridharan in Bengaluru; Editing by Krishna Chandra Eluri

Our Standards: The Thomson Reuters Trust Principles.

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