The share price of S&P/ASX 200 Index (ASX: XJO) coal producer Coronado Global Resources Inc (ASX: CRN) is taking off after the company confirmed rumours of takeover talks.
The stock is apparently on the radar of giant coal pure-play Peabody Energy Corporation (NYSE: BTU), with the pair discussing what could be a $9 billion merger.
The Coronado share price is rocketing 8.27% to trade at $2.095 right now. For comparison, the ASX 200 is up 0.01% at the time of writing.
Let's take a closer look at the latest update from the coal stock.
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ASX 200 coal share Coronado takes off on takeover talks
The Coronado share price is leaping after the company responded to takeover rumours this morning, saying it is indeed in talks with $6 billion coal giant Peabody.
However, the ASX 200 coal miner said discussions are still ongoing and there's no guarantee they'll end in a deal.
The pair are discussing a combination transaction, Coronado confirmed. At last market close, they boasted a combined market capitalisation of around $9.3 billion.
The ASX 200 company commanded a $3.2 billion valuation while its New York-listed counterpart is worth around $6.1 billion.
Peabody operates numerous coal mines across Queensland and New South Wales. It also boasts multiple assets in the United States.
Similarly, Coronado operates one coal project in Queensland's Bowen Basin and another three in the United States' Central Appalachian region.
Today's gains included, the Coronado share price has soared 61% since the start of 2022, driven by soaring coal prices.
The company's revenue rocketed 147% in the first half of 2022, reaching US$1,978 million. Its adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) also lifted a massive 3,204% to US$849 million.
Meanwhile, Peabody posted US$577.8 million of adjusted EBITDA for the June quarter, marking a 373% year-on-year increase, while its revenue lifted more than 80% to US$1,322 million. Its share price has jumped 133% year to date.
No doubt ASX 200 coal fans will be watching the share closing in coming months to learn if the takeover talks come to fruition.
