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ArcelorMittal Quits Bid To Buy Coal Company

ArcelorMittal says it's pulling out of a deal to jointly control an Australian coal company with U.S.-based Peabody Energy Corp.

LUXEMBOURG (AP) -- ArcelorMittal says it's pulling out of a deal to jointly control an Australian coal company with U.S.-based Peabody Energy Corp.

The steelmaker says the deal required it to invest too much capital in a business it wouldn't fully control.

Monday, St. Louis-based coal company Peabody Energy and Luxembourg-based ArcelorMittal announced they'd acquired nearly 60 percent of Macarthur Coal Ltd.

An ArcelorMittal statement Tuesday said the acquisition of Macarthur by the holding company, PEAMCoal Pty Ltd, would be unaffected. The AU$16 ($16.65) offer price will remain open until November 11.

"Given the unanticipated level of acceptances into the offer, ArcelorMittal believes that it is more appropriate to focus its capital elsewhere in its business," the statement said.