South Korea's POSCO said it would buy 10 percent of Macarthur Coal for $404 million, becoming the third overseas investor to hold a major stake in the Australian miner, in a move that could block any take-over of the company.
POSCO, the world's No 4 steel firm, said on Monday it had agreed to buy the stake in Macarthur Coal from the Australian group's founder and major shareholder Ken Talbot for A$20 per share, paying around A$420 million, to secure a steady supply of coal.
The price is an 11 percent premium to Macarthur's closing share price of A$18 on Friday. The deal follows news at the weekend that top world steel maker ArcelorMittal raised its stake in Macarthur, which supplies steel mills with more than a third of the world's pulverised coal, to 19.9 percent - the most allowed in Australia before a firm must make a full take-over bid. Arcelor also paid A$20 per share, bringing its total investment in Macarthur to A$843 million.
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