Wednesday, August 10, 2011
No EC review for Macarthur Coal takeover
August10, 2011 | AAP
The European Commission does not need to review the planned takeover of Macarthur Coal by US giant Peabody Energy and the world's biggest steel maker, ArcelorMittal, the joint bidders say.
In a statement on Wednesday the bidders said they had been informed by the commission's directorate general for competition that the EU Merger Regulation does not apply to the all-cash $4.7 billion bid for the Queensland-based miner.
The offer was conditional on, among other things, the European Commission confirming that the offer did not fall within its jurisdiction.
The bidders currently have a 16.1 per cent stake in the target, representing ArcelorMittal's interest.
Macarthur last week rejected the hostile $15.50 per share bid after the parties were unable to agree on conditions for a sweetened $16 a share offer, with the target accusing ArcelorMittal and Peabody of imposing unreasonable restrictions.
Shares in Macarthur were up 47 cents, or 3.19 per cent, at $15.19 at 1240 AEST.