ArcelorMittal-Peabody secure clearances for Macarthur takeover

In a joint statement, both the companies said they have received clearance from the Chinese Commerce Ministry to proceed with the offer for all outstanding shares of Macarthur Coal Ltd.

A final clearance from the Commerce Ministry of China was necessitated as Chinese investment fund, CITIC is the largest shareholder in Macarthur with 24.3 per cent stake.

The Peabody-ArcelorMittal combine has already secured the approval of Australian regulatory authorities for the proposed deal.

This means that all necessary regulatory conditions to the completion of offer have now been received," said the joint statement.

On July 11, the Peabody-ArcelorMittal combine had made an initial offer of AUD 15.50 per share through a new company, PEAMCoal, for acquiring the Australian mining firm.

Thereafter, on August 1, the combine launched a hostile takeover bid after Macarthur Board refused to back the offer. Subsequently, on August 30, the Australian firm's Board agreed to the offer.

The bid requires support of over 50 per cent of the total shareholders and is scheduled to close on 28 October 2011, unless extended, the statement said, adding that "offer values the equity in Macarthur at approximately AUD 4.8 billion".

Macarthur, the world's largest producer of pulverised coal, with its two mines in Queensland's Bowen Basin, has been a takeover target for many companies and had fended off four such bids in recent times.

The company, which exports its entire product, has plans to double its production capacity by 2014.

PEAMCoal has interest of approximately 22.78 per cent in Macarthur. ArcelorMittal holds 40 per cent stake in PEAMCoal, while Peabody holds rest of the stake in it.