Coronado Global Resources Inc. CRN, +8.01% confirmed Wednesday that it has held “confidential discussions” with Peabody Energy Corp. BTU, -2.62% about a merger. The Australia-based coal miner said it was responding to a report in The Australian that said the company and the Missouri-based coal miner, which had a market capitalization of $3.80 billion as of Tuesday’s close, were pondering a tie up as coal prices surged. Coronado said it would not provide any further details, as no transaction has been agreed, and there is no certainty that the discussions will lead to a deal. Shares of Peabody Energy fell 1.4% in premarket trading, while Coronado’s stock surged 8.0% in Australia trading. Year to date, Peabody’s stock has rocketed 162.4% through Tuesday while the S&P 500 SPX, -0.65% has dropped 24.7%.
