ArcelorMittal pulls out of Macarthur bid |
| Financial Times - Oct 25, 2011 |
ArcelorMittal has pulled out of a $5bn joint bid for Macarthur Coal after deciding that the $1.2bn it was to have spent might have represented a step too far in the light of growing signs of global economic weakness.
The surprise announcement means that Peabody Energy, the US coal business that was ArcelorMittal’s bid partner, will be free to take 100 per cent control of the Australian group.
As a result of the decision, ArcelorMittal will save having to spend $1.2bn in buying a portion of the 84 per cent of the shares in Macarthur that it did not already own. It was to have done this through a joint bid vehicle with Peabody in which it had a 40 per cent stake, leaving the US coal group with 60 per cent.
The Luxembourg-based steel company, the world’s biggest in terms of output, stands to gain about $700m through selling its existing 16 per stake in Macarthur to Peabody.
Read Full Article from Financial Times
- Posted: 2011-10-25 11:23:06
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