Australian low-volatile metallurgical coal producer Australia-based Macarthur Coal and New South Wales-based Gloucester Coal, which operates mines in the Hunter Valley and is largely owned by Hong Kong-based Noble Group, have mutually agreed to terminate bid implementation agreement entered into by them on December 22, 2009, an initial step for Macarthur's takeover deal for Gloucester.
Both Gloucester and Macarthur agree that the Macarthur bid for Gloucester would not succeed in its current form, the companies' separate statements said. The bid is due to expire on May 27 but Macarthur is to withdraw it from the Australian Securities and Investment Commission (ASIC) shortly.
As SteelOrbis previously reported, Macarthur Coal Limited had announced on February 26 that its board confirmed a bid to takeover Gloucester. Noble Group's shareholders on April 19 did not approve the sale of the company's stake in Australian miner Gloucester Coal to Macarthur, after which the deal was off. The coal producer was offering Gloucester shareholders 0.84 Macarthur shares for every one Gloucester share held or AU$8 a share.