Macarthur Coal backs Peabody, ArcelorMittal's revised bid

The board of Macarthur Coal today approved a sweetened takeover bid from Peabody Energy, the world's largest private-sector coal company and ArcelorMittal, the world's largest steelmaker that values, Macarthur, Australia's second-biggest coal miner at A$4.83 billion ($5.16 billion).

The takeover offer from Peabody Energy and ArcelorMittal offers Macarthur shareholders A$16 per share.

Macarthur is Australia's second-biggest coal miner and supplier of low volatile pulverised injection coal to steel mills in Asia, Europe and Brazil through its 73.3 per cent stake in Coppabella Mine and Moorvale Mine and a 74.66 per cent stake in the Middlemount Mine project.

Macarthur has been a takeover target in the wake of growing demand for coal and rising price of coal reaching a record high this year and has so far fended off four takeover bids.

"The Macarthur board now recommends the revised PEAMCoal offer, in the absence of a superior proposal," the company said in a statement, urging shareholders to accept.

"Although it remains possible that a superior proposal might be made, none have emerged to date and there can be no assurances that any will emerge." Macarthur said in a statement.