“We can now move with full speed to implement a seamless integration of Excel's high-quality assets and people into Peabody's organisation,” Peabody president and chief executive Gregory H. Boyce said.
“With the new operations and late-stage growth projects, we look forward to tripling our Australian production at a time when demand from the world's largest coal exporting country is growing dramatically."
Peabody will pay participating shareholders $9.50 per share on October 25.
On October 26 Excel will apply for termination of the official quotation of Excel shares on the Australian Stock Exchange and to be removed from the official ASX list.
Peabody Energy is the world's largest private-sector coal company, with 2005 sales of 240 million tons of coal and $4.6 billion in revenues.
Its coal products fuel approximately 10% of all US electricity generation and 3% of worldwide electricity.
