Peabody’s first offer of $8.50/share in July won backing from the Excel board but as rumours heightened that rival bidders were circling, the former upped its offer and bought 19.99% of Excel stock.

In Australia, Peabody is already a growing force, with five minesites under operation in Queensland’s Bowen and Surat Basins.

Peabody president and chief executive Gregory H. Boyce said the combined operations of Excel and Peabody will provide an extensive growth platform to serve high-demand markets, including the booming Asian market demand.

“We have worked closely with the Excel team on the integration plan for a number of months, and we look forward to combining and expanding our Australian platform to serve high-demand thermal and metallurgical coal markets at a time when the forecast for seaborne coal continues to grow,” Boyce said.

Financial closing of the transaction is expected later this month.

Excel’s shares remained steady at $9.45 in morning trade today.