Posco buys protective Macarthur Coal stake By Virginia Marsh in Sydney and Anna Fifield in Seoul
Published: July 1 2008 03:00 | Last updated: July 1 2008 03:00
Posco of South Korea, the world's fourth-largest steelmaker, has moved to strengthen the security of its coal supplies by joining ArcelorMittal and China's Citic on the share register of Macarthur Coal.
The three groups together now control almost half of the A$4.2bn (US$4bn) Australian group, making it virtually impossible for one of them to launch a successful takeover bid for Macarthur without the others' agreement.
The sharp escalation in coking coal prices has highlighted Macarthur's value. The group accounts for about a third of the export trade in pulverised coal, a highly efficient form of the mineral favoured by steelmakers.
Posco said yesterday it had invested A$420m in a 10 per cent stake in Queensland-based Macarthur at A$20 a share - the same price paid by ArcelorMittal, the steelmaker headed by Lakshmi Mittal.
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