These Coal Giants Want to Take All the Shares of Macarthur

An increased A$4.83B ($5.12B) acquisition offer was given by Peabody Energy (NYSE:BTU) and ArcelorMittal (NYSE:MT), backed by Macarthur (MACDF.PK). However, a rival bid may still emerge for the world’s biggest producer of pulverized coking coal (NYSE:KOL), with sources saying Anglo American (AAUKY.PK) is interested.

ArcelorMittal (NYSE:MT) and Peabody (NYSE:BTU), the biggest U.S. coal producer, raised their bid for Brisbane-based Macarthur (MACDF.PK). Macarthur (MACDF.PK) will be the second- largest coal takeover this year. This year has yielded almost 50 coal transactions globally, with a combined value of more than $20 billion.

China’s Citic Group owned 24.6 percent of Macarthur (MACDF.PK), ArcelorMittal (NYSE:MT) 16.07 percent, and South Korea’s Posco (NYSE:PKX) 7.02 percent. The Chinese company said it hadn’t decided whether to accept the initial offer from Peabody (NYSE:BTU). A rival bid may include Citic, which is receiving advice from Macquarie Group Ltd. (MQG).

Credit Suisse Group AG (NYSE:CS) in July raised its long-term price forecast for pulverized coal by 17 percent to $134 a metric ton. Benchmark prices reached a record $275 a ton in the June quarter, Macarthur (MACDF.PK) said this month, citing production constraints in Australia and stronger seaborne global demand,” according to Bloomberg.