ArcelorMittal unexpectedly pulls out of PEAMCoal JV

Tuesday, 25 October 2011 18:10:54 (GMT+2)

Luxembourg-based world's steel giant ArcelorMittal has unexpectedly announced that it is pulling out of PEAMCoal, the 60-40 joint venture formed by Peabody and ArcelorMittal for the takeover of Australian coal producer Macarthur.

The move comes just days after PEAMCoal acquired a majority stake in Macarthur. Peabody has said in a statement that it will now own 100 percent in PEAMCoal and become owner of all the Macarthur shares that are tendered in the bid.
 
Meanwhile, ArcelorMittal has said it is leaving the joint venture since it is not appropriate anymore to allocate substantial capital to the acquisition of a non-controlling, minority business interest.
 
According to its statement, ArcelorMittal will remain a shareholder in PEAMCoal for a further 90 days until the termination arrangements are completed. This termination will not affect the unconditional PEAMCoal offer for Macarthur. ArcelorMittal will also continue to fulfill its funding obligations to PEAMCoal until the termination is valid.
 

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