Global Coal Consolidation to Continue
ST. LOUIS (AP) -- A Wall Street analyst says Peabody Energy's planned $5.2 billion takeover of Australia's Macarthur Coal is a good fit and reflects coal-sector consolidation that's not expected
to ease any time soon.
Macarthur is a major producer of pulverized coal coveted by steel producers. It twice had spurned buyout efforts by St. Louis-based Peabody and Luxembourg-based steelmaker ArcelorMittal. But Macarthur announced Monday it's recommended that shareholders accept a revised bid.
Brean Murray, Carret & Co. analyst Jeremy Sussman says the deal is "slightly on the expensive side." But he says it gives Peabody "precious" Australian terminal space and makes it a bigger player in producing coal used in steelmaking.
Peabody has mines in Illinois, Indiana, Colorado, Wyoming, Arizona and New Mexico.