ArcelorMittal yesterday morning finalised a 14.9% stake in Macarthur including 4.27% from founder and director Ken Talbot and 10.4% from Tinkler Investments for an average price of $A19.96 per share.
ArcelorMittal outlaid $A631 million for the stake.
The 9.06 million shares bought from Talbot represent about 20% of his stake in the company.
The deal triggered the breakdown of talks with the third party which Macarthur had been talking to for a month.
Talbot Group director of resources Dennis Wood told the Australian that Talbot had not wanted to split his shareholding, but had done so to move negotiations forward and establish a bottom line price for a takeover play.
ArcelorMittal said it would be pursuing discussions with Macarthur; however, the Indian steelmaker will require approval from the Foreign Investment Review Board to take a larger stake in the company.
UBS analysts told Dow Jones ArcelorMittal's purchase could trigger further consolidation with steelmakers targeting more Australian miners to guarantee supply.
UBS suggested Gloucester Coal and Felix Resources could be coal takeover targets.
Macarthur shares closed up 8.05% yesterday at $19.86.
