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ArcelorMittal accepts Peamcoal offer

28/02/2012

ArcelorMittal yesterday provided notice to Peabody Energy that, in accordance with the Co-Operation and Contribution Agreement between the two companies, following its acceptance of Peamcoal Pty Ltds offer for Macarthur Coal Ltd the day before, it has terminated the Co-Operation and Contribution Agreement as provided for therein. ArcelorMittal will remain a shareholder in Peamcoal until the termination arrangements are completed which is expected to be in approximately 90 days time.

In taking this decision, ArcelorMittal has determined that it would no longer be appropriate to allocate substantial capital to the acquisition of a non-controlling, minority business interest. This is in accordance with the rights that ArcelorMittal originally negotiated with Peabody at the time the Co-Operation and Contribution Agreement was concluded.

Given the unanticipated level of acceptances into the offer, ArcelorMittal believes that it is more appropriate to focus its capital elsewhere in its business. ArcelorMittal considers that the capital commitment that would be required to retain its Macarthur interest and grow it materially further, exceeds what is appropriate to allocate to a business that ArcelorMittal does not fully control and consolidate.

The unconditional Peamcoal offer for Macarthur will not be affected by ArcelorMittals acceptance and will remain open until 7:00 p.m. (Brisbane time) on 11 November 2011 unless extended. ArcelorMittal will continue to perform its funding obligations to Peamcoal until the termination takes effect as described in section 10.2(f) of Peamcoals Bidders Statement for Macarthur.

ArcelorMittal, Luxembourg