UPDATE: ArcelorMittal, Peabody Secure 59.85% In Macarthur Coal

The world's largest private coal miner and steelmaker by output Peabody Energy Corp. (BTU) and ArcelorMittal (MT) Monday said they secured a 59.85% stake in Australian coking coal miner Macarthur Coal Ltd. (MCC.AU) and as a result their offer became unconditional.

PEAMCoal Pty Ltd., the suitors' joint-venture body, said in a statement that it is offering to pay A$16 for each share of Macarthur and will raise its offer to A$16.25 if it manages to get at least 90% of the company by Nov. 11.

The raised cash offer would increase Macarthur's equity value to A$4.91 billion ($5.1 billion) from A$4.8 billion under the current offer.

"We encourage remaining Macarthur shareholders to accept without delay and improve their chances of receiving the premium A$16.25 per share price, should we reach the 90% compulsory acquisition threshold," Aditya Mittal, ArcelorMittal's Chief Financial Officer said in a statement.

ArcelorMittal and Peabody had moved to buy Macarthur in July after Peabody had tried unsuccessfully on its own. The two companies had originally offered to pay A$15 a share of Macarthur but raised it to A$16.

The current deal ends Peabody's 19-month quest for majority control of Macarthur and further increases the consolidation of the coal sector in Australia, the world's largest exporter of the commodity.

PEAMCoal will proceed to appoint representatives to the Macarthur's board of directors.

-By Inti Landauro, Dow Jones Newswires; [phone]; [e-mail] (Alex MacDonald in London and David Fickling in Sydney contributed to this article.)