The world's largest private coal miner and steelmaker by output Peabody Energy Corp. (BTU) and ArcelorMittal (MT) Monday said they secured a 59.85% stake in Australian coking coal miner Macarthur Coal Ltd. (MCC.AU) and as a result has made its offer unconditional.

PEAMCoal Pty Ltd., the suitors' joint-venture body, said in a statement that it is offering to pay A$16 for each share of Macarthur and will raise its offer to A$16.25 if it manages to get at least 90% of the company by Nov. 11.

The raised cash offer would increase Macarthur's equity value to A$4.91 billion ($5.1 billion) from A$4.8 billion under the current offer.

"We encourage remaining Macarthur shareholders to accept without delay and improve their chances of receiving the premium A$16.25 per share price, should we reach the 90% compulsory acquisition threshold," Aditya Mittal, ArcelorMittal's Chief Financial Officer said in a statement.

ArcelorMittal, which already owned 16.1% of Macarthur prior to the takeover bid launch, wants to gain further control of the Australian miner as it seeks to increase its self-sufficiency in steelmaking raw materials such iron ore and coal.

Macarthur is the world's biggest miner by output of pulverized coking coal, a low-cost raw material used to make steel and has benefited from China and other emerging countries' robust demand for steelmaking raw ingredients as they continue to undergo a rapid pace of industrialization and urbanization.

The current deal also ends Peabody's 19-month quest for majority control of Macarthur, which is located close to key coal consuming growth regions such as China. It also further increases the consolidation of the coal sector in Australia, the world's largest exporter of the commodity.

ArcelorMittal and Peabody had moved to buy Macarthur in July after Peabody had tried unsuccessfully on its own to purchase the coal miner. The two companies had originally offered to pay A$15 a share of Macarthur but raised it to A$16.

Macarthur's largest shareholder, Chinese state-owned investment group CITIC Group, Friday said it would tender its 16.34% stake to the ArcelorMittal and Peabody offer.

-By Inti Landauro and Alex MacDonald, Dow Jones Newswires; +44 (0)207 842 9328; alex.macdonald@dowjones.com (David Fickling in Sydney contributed to this article.)

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