Macarthur Coal Ltd. has nearly doubled its full year profit and repeated its advice to shareholders to reject a takeover offer from U.S energy giant Peabody Energy Corp. and Luxembourg-based steelmaker ArcelorMittal.
The company's 241 million Australian dollars ($253 million) profit for the fiscal year through June announced Wednesday was up 93 per cent from AU$125 million in the previous year despite reduced production due to record rainfall.
Peabody Energy BTU +3.19% and ArcelorMittal MT +3.36% today announced they have received clearance from the Ministry of Commerce of the People's Republic of China (MOFCOM) to proceed with the A$16.00 per share cash offer for all outstanding shares of Macarthur Coal Ltd (asx:MCC).
The deal for Peabody Energy, the world's biggest private-sector coal company, and a partner to buy Australia's Macarthur Coal for more than $5 billion concludes more than a year of pursuit and continues widespread consolidation in that energy sector.
Peabody Energy Corp. is leaving the door open for a rival bidder to step in for Macarthur Coal Ltd. by offering less for the Australian mining company than it did last year, even as profit is projected to double.
The Australian miner said annual sales could fall by around a fifth as a result of the heavy flooding that in the country that affected some of its collieries Australian miner Macarthur Coal's annual sales could fall by around a fifth
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