Just days after Citic Resources accepted Peabody Energy and ArcelorMittal’s $5 Billion takeover offer for just over 49% of Macarthur Coal, the pair have pushed their way to owning 59.85 percent of the coal company according to the New York Times.
Peabody Energy Looks Forward to Developing Macarthur Coal
In a statement given after the majority stake was announced Sunday night, Gregory H. Boyce, Peabody Energy’s CEO, said, “We are pleased to obtain a controlling interest in Macarthur Coal and look forward to advancing the company’s operating performance and growth initiatives.” The stake is considerably more than the 50.01% stake that Peabody and ArcelorMittal had identified as the minimum needed “to make the acquisition unconditional.”
Macarthur Coal and the Value of the Deal
The announcement of Peabody Energy and ArcelorMittal’s new majority stake comes just two days after Citic Resources, which owns 25 percent of Macarthur, “agreed to an increased $16 a share offer from Peabody and ArcelorMittal. The price will rise to $16.25 a share if the two companies can reach the compulsory acquisition threshold of 90 percent.” Macarthur Coal is valued at $4.9 billion.