Following due diligence, Peabody and ArcelorMittal attempted to negotiate a bid implementation agreement (BIA) with Macarthur. However, Macarthur was not willing to engage on a BIA. The Macarthur board declined to recommend this offer to its shareholders.

Peabody Energy Chairman and CEO Greg Boyce said they decided to take this “attractive offer” directly to Macarthur shareholders. The offer represents a 41% premium to the closing price immediately before the approach was disclosed to the market, explained Aditya Mittal, CFO, ArcelorMittal.

Macarthur Coal is a leading producer of low-volatile PCI metallurgical coal with production and development assets in the Bowen Basin, Australia, including the Coppabella and Moorvale Joint Venture, Middlemount and Codrilla. It holds total coal reserves of 270 million metric tons (mt) and total resources of approximately 2.3 billion mt. ArcelorMittal is a leading integrated steel and mining company, with operations in more than 60 countries.