ArcelorMittal (India) and Peabody (USA) have made an indicative, non-binding and conditional proposal to make an off-market takeover bid, through a bid company 40% owned by ArcelorMittal and 60% owned by Peabody, to acquire up to 100% of the issued securities of Macarthur (Australia) for a total of A$4.7bn (US$5.1bn). ArcelorMittal already has a relevant interest of approximately 16% of Macarthur's shares. Any resulting offer to Macarthur shareholders would be conditional only on a minimum of 50.01% acceptance by Macarthur shareholders (notably, Citic and Posco which together hold 22.7% of the company), approval from Australia's Foreign Investment Review Board and other customary conditions and approvals.
Macarthur Coal Limited is the world's largest producer of (seaborne) low volatile pulverized coal injection (LV PCI) coal product used for steel making. The Company currently operates two mines in Queensland's Bowen Basin.