Source: Zacks Investment Research                          Date: 08 September, 2011

Peabody Energy and Arcerlol Mittal stepped up there offer to acquire Macarthur Coal. Macarthur Coal agreed to the sale at AUD 16 per share, a total price of AUD 4.8 billion (USD 5.2 billion).

The two opened there offer at AUD 15.50 last July, but were flatly rejected by Macarthur's board of directors. The board said it would not sell for under AUD 16 per share, which the two firms intially contested, but eventually agreed to for a 100 percent acquisiton of Macarthur's shares. The final sale's price was 40 perecent above the selling price at AUD 11.08.

Both Peabody and ArcelorMittal will benefit from the acquistion. The offer will allow Peabody to strengthen its position in the global coal producing market and give ArcelMittal access to Macarthur's coal reserves.

ArcelorMittal is a leadeing intergrated steel and mining company with operations in Mongolia. Peabody Energy, the biggest U.S. coal producer, currently owns 26 percent of Tavan Tolgoi's Western Tsankhi.