U.S. District Court Upholds FTC's Decision To Block Peabody And Arch's Joint Venture Of PRB/Colorado Assets

Rhea-AI Summary

On September 29, 2020, Peabody (NYSE: BTU) announced that the U.S. District Court supported the FTC's decision to block its joint venture with Arch Resources for the Powder River Basin and Colorado assets. CEO Glenn Kellow expressed disappointment, emphasizing the competitive landscape against natural gas and renewables. Peabody aims to remain a low-cost coal provider, ensuring reliable and affordable energy for customers. With significant operations across 25 countries, Peabody focuses on sustainability while delivering essential products for electricity and infrastructure.

Positive

• Peabody's commitment to remain a low-cost coal provider in a competitive market.

Negative

• The court's ruling blocks the joint venture, potentially limiting growth opportunities.
• Increased competition from natural gas and renewables may impact Peabody's market share.

ST. LOUIS, Sept. 29, 2020 /PRNewswire/ -- Peabody (NYSE: BTU) today announced that the U.S. District Court concluded its review and is supporting Federal Trade Commission (FTC) efforts to block the formation of the joint venture combining the companies' Powder River Basin (PRB) and Colorado assets. 

"We are deeply disappointed with the court's decision as the intense all-fuels competition is clearly apparent to us," said Peabody President and CEO Glenn Kellow.  "Our focus now is on continuing to be the low-cost PRB coal provider to best compete against natural gas and subsidized renewables.  We remain committed to ensuring our customers continue to have access to a reliable and affordable fuel source."

Peabody is a leading coal producer, serving customers in more than 25 countries on six continents.  We provide essential products to fuel baseload electricity for emerging and developed countries and create the steel needed to build foundational infrastructure.  Our commitment to sustainability underpins our activities today and helps to shape our strategy for the future.  For further information, visit PeabodyEnergy.com.

Contact:
Peabody
314.342.4351

 

View original content to download multimedia:http://www.prnewswire.com/news-releases/us-district-court-upholds-ftcs-decision-to-block-peabody-and-archs-joint-venture-of-prbcolorado-assets-301140118.html

SOURCE Peabody

FAQ

What was the U.S. District Court's decision regarding Peabody's joint venture?

The U.S. District Court supported the FTC's decision to block Peabody's joint venture with Arch Resources.

Why is Peabody disappointed with the court's ruling on their joint venture?

Peabody is disappointed as the ruling limits their ability to compete effectively against natural gas and subsidized renewables.

What is Peabody's strategy following the court's decision?

Peabody aims to continue being a low-cost coal provider and ensure reliable energy access for customers.

How does Peabody plan to compete in the energy market?

Peabody plans to compete by focusing on low-cost coal production and maintaining strong customer relationships.

Which markets does Peabody serve?

Peabody serves customers in over 25 countries across six continents.