Australia-based low-volatile metallurgical coal producer Macarthur Coal Limited has announced that US-based coal company Peabody Energy Corporation (Peabody) has confirmed the completion of its review of the due diligence materials provided by Macarthur.
According to Macarthur's statement, Peabody advised Macarthur that the new mining tax legislation proposal, which is projected to place a new tax burden on the mining sector of Australia, had to be factored into its decision. Macarthur said it is aware this creates uncertainty for shareholders and it would seek to engage with Peabody on additional information that Peabody has requested and on the tax issue.
As SteelOrbis previously reported, Peabody had until May 3, 2010 or 11 calendar days to complete its due diligence review to formalize its AU$4.07 billion ($3.78 billion) bid for Macarthur.
The due diligence involved Macarthur making approximately 390 documents available to Peabody.