Peabody, ArcelorMittal swallow Macarthur

PEABODY Energy and ArcelorMittal have acquired a majority stake in Queensland pulverised coal injection producer Macarthur Coal, following the revised $4.6 billion offer for the company.
Peabody, ArcelorMittal swallow Macarthur Peabody, ArcelorMittal swallow Macarthur Peabody, ArcelorMittal swallow Macarthur Peabody, ArcelorMittal swallow Macarthur Peabody, ArcelorMittal swallow Macarthur

 

Lauren Barrett

Joint bidding vehicle PEAMCoal said it now had a relevant interest in approximately 59.85% of Macarthur shares after the $16-a-share bid for the miner was accepted.

It surpasses the minimum accepted condition of 50.01%, with the offer now declared unconditional.

Peabody Energy chairman Gregory Boyce welcomed the acquisition.

“We are pleased to obtain a controlling interest in Macarthur Coal and look forward to advancing the company’s operating performance and growth initiatives,” he said.

The offer will increase to $16.25 per share if PEAMCoal acquires a relevant interest in at least 90% of Macarthur shares by November 11.

The deal follows recent suggestions by Macarthur’s directors urging shareholders to accept a takeover offer from Peabody Energy and ArcelorMittal, after PEAMCoal agreed to up the offer by 50c to $16/share in August this year.

Macarthur previously warned shareholders that if PEAMCoal’s sweetened cash offer was unsuccessful and there were no rival offers, its shares could trade at a discount to the $16/share offer price.

Peabody and ArcelorMittal have secured all regulatory clearances for the acquisition.

Macarthur recently recorded annual revenue of $687.3 million in the year to June 2011, 2.5% higher than the same time last year.

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