However, they won't buy coal mines. Instead, there will be arbitrage.

Peabody has withdrawn from a $3.8 billion deal to acquire Anglo American's assets.

Peabody first agreed to acquire coking coal mines in Queensland's Bowen Basin. However, in April, operations at the Moranbah North mine were suspended following an underground fire.

This prompted Peabody to invoke a clause allowing it to withdraw or renegotiate the contract if any adverse events occurred between the signing of the contract and its completion.

Anglo American said on August 19 that it would "soon commence arbitration to seek damages for wrongful termination," disputing the claim that the fire and mine closure constituted a material adverse change because there was no damage to the plant or equipment.

As Reuters points out, Anglo is confident that an alternative buyer will be found as part of the new sale process .

The American company Peabody Energy is engaged in the mining of thermal and coking coal. It has mines located in various regions of the United States. Peabody Energy was founded as Peabody, Daniels & Company in 1883 by Francis Peabody, the son of a prominent Chicago lawyer, and his partner.