Friday, 12 Aug 2011
Sydney, 12 August — US coal producer Peabody Energy and steel maker ArcelorMittal today received approval from the Australian government's Foreign Investment Review Board (FIRB) for their joint A$4.7bn ($4.84bn) takeover offer for Australian producer Macarthur Coal. The ruling signals that Peabody and ArcelorMittal have overcome a key regulatory hurdle to succeed in their bid.
The FIRB has the power to block foreign takeovers of domestic companies or set conditions for a transaction to take place. This is the second time Peabody has attempted to buy Macarthur after it last year made a A$16/share bid that was rejected by Macarthur. The Peabody/ArcelorMittal bid is for A$15.50/share.
Macarthur has not welcomed the bid, but the fall in the price of its main pulverised coal injection (PCI) product in recent months has made it challenging to make the case to shareholders that it should remain independent. Macarthur has several major shareholders including ArcelorMittal, Chinese state-controlled investment firm Citic and South Korean steel producer Posco.
Sydney, 12 August — US coal producer Peabody Energy and steel maker ArcelorMittal today received approval from the Australian government's Foreign Investment Review Board (FIRB) for their joint A$4.7bn ($4.84bn) takeover offer for Australian producer Macarthur Coal. The ruling signals that Peabody and ArcelorMittal have overcome a key regulatory hurdle to succeed in their bid.
The FIRB has the power to block foreign takeovers of domestic companies or set conditions for a transaction to take place. This is the second time Peabody has attempted to buy Macarthur after it last year made a A$16/share bid that was rejected by Macarthur. The Peabody/ArcelorMittal bid is for A$15.50/share.
Macarthur has not welcomed the bid, but the fall in the price of its main pulverised coal injection (PCI) product in recent months has made it challenging to make the case to shareholders that it should remain independent. Macarthur has several major shareholders including ArcelorMittal, Chinese state-controlled investment firm Citic and South Korean steel producer Posco.
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