ArcelorMittal and Peabody Energy have won over Macarthur Coal with a sweetened Aus $4.9 billion ($5.2 billion) takeover offer.

Macarthur caved in at an offer well below what it pressed for earlier in August. “They’re bowing to the inevitable, really,” said Peter Chilton, an analyst at Constellation Capital Management.

From in.finance.yahoo.com:

After Peabody and ArcelorMittal completed their review of Macarthur’s books, Macarthur said on August 1 it would be willing to recommend an Aus $16 a share offer on condition it would be raised to Aus $18 a share, if the suitors won more than 90 per cent acceptances.

Peabody and ArcelorMittal rejected that proposal, and Macarthur has now caved in, trapped in part by the recent share market turbulence and investor concerns about global growth.

“People are more nervous about China and coal, following the correction in share markets. That also influences what people are prepared to do,” said Chilton.

Macarthur’s shares rose just 7 cents to Aus $15.87 on Tuesday, indicating investors do not expect any higher bid to emerge.

Top US coal miner Peabody and ArcelorMittal raised their offer for the biggest producer of pulverized coal in the world by 3 per cent to Aus $16 a share.