ArcelorMittal, in $5-bn bid for Australia's Macarthur Coal

Peabody Energy has teamed up with ArcelorMittal to offer $5 billion for Australia's Macarthur Coal, the world's biggest producer of pulverised coal, as demand for steel-making raw materials intensifies.

Peabody Energy has teamed up with ArcelorMittal to offer $5 billion for Australia's Macarthur Coal, the world's biggest producer of pulverised coal, as demand for steel-making raw materials intensifies.

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The cash offer of A$15.5 a share represents a 40% premium to Monday's close and comes just a day after Australia unveiled a plan to tax carbon emissions from the nation's worst polluters, or about 500 companies, including coal miners.

The deal values Macarthur's 1.64 billion tonnes in reserves at nearly A$3.0 per tonne.

Macarthur made no recommendation on the proposal and said it would seek talks with Peabody and Arcelor on price and terms.

ArcelorMittal and Peabody said they would make their takeover proposal through a bid company, with ownership split 40% and 60%, respectively.