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ArcelorMittal and Peabody Submit Proposal to Acquire Macarthur Coal
07/12/2011 - ArcelorMittal and Peabody Energy Corp. have made an indicative, nonbinding and conditional proposal to make an off-market takeover bid to acquire up to 100% of the issued securities of Macarthur Coal Limited.
ArcelorMittal and Peabody Energy Corp. have made an indicative, nonbinding and conditional proposal to make an off-market takeover bid to acquire up to 100% of the issued securities of Macarthur Coal Limited.
Under the proposal, Macarthur shareholders would be offered a cash price of A$15.50 per share, implying a value of approximately A$4.7 billion for the equity in Macarthur.
The bid will be conducted through a bid company 40% owned by ArcelorMittal and 60% owned by Peabody. The proposal is conditional on successful completion of due diligence, which would be completed in a timely manner. Any resulting offer to Macarthur shareholders would be conditional only on a minimum of 50.01% acceptance by Macarthur shareholders, approval from Australia's Foreign Investment Review Board and other customary conditions and approvals.
ArcelorMittal, which already has a relevant interest of approximately 16% of Macarthur's shares, is being advised by RBC Capital Markets and Mallesons Stephen Jaques.
ArcelorMittal is the world's largest integrated steel and mining company, with presence in more than 60 countries. The company holds a leadership position in major global steel markets, including automotive, construction, household appliances and packaging, with leading R&D and technology, as well as sizeable captive supplies of raw materials and outstanding distribution networks. With an industrial presence in over 20 countries spanning four continents, the company covers key steel markets, from emerging to mature.
In 2010, ArcelorMittal had revenues of $78.0 billion and crude steel production of 90.6 million tonnes, representing approximately 6% of world steel output.
