China clears Peabody, ArcelorMittal's A$4.83-bn takeover of Macarthur Coal
13 October 2011
Chinese regulators have approved the A$4.83-billion takeover of Australian coal miner Macarthur Coal by Peabody Energy and ArcelorMittal.
The clearance, which came from the ministry of commerce of the People's Republic of China (MOFCOM), has now received all approvals for takeover, Peabody said in a statement.
"This action from MOFCOM now clears the way for us to complete this transaction in a timely manner," said Peabody chairman and CEO Gregory Boyce.
The proposed transaction required Chinese regulatory clearance since China is a major buyer of pulverised coal injection (PCI) metallurgical coal and Macarthur holds a substantial market share in China.
In August, the board of Macarthur, Australia's second-biggest coal miner approved a sweetened A$4.83 billion takeover bid from Peabody, the world's largest private-sector coal company and ArcelorMittal, after having rejected an earlier A$4.7 billion offer.
Peabody and ArcelorMittal have extended their takeover bid to 28 October. They had said had said that for the bid needs the support of Macarthur investors holding 50.1 per cent of shares to succeed. Arcelor already owns 16 per cent.