Both coal companies agreed the offer, first made on December 22 last year, would not succeed in its present form.

The deal was never likely to go through once Macarthur engaged Peabody Energy, with the major American coal producer making a lucrative bid for Macarthur shares.

Peabody was originally seeking a takeover of Macarthur, but then switched to seeking a controlling interest in the Queensland company so that Macarthur’s existing substantial shareholders could keep their stakes.

While Peabody’s cash bid reached $16 per Macarthur share, since the Rudd government’s resource super-profits tax was announced, the offer was reduced to $15 per share as Macarthur shares tanked.

Australian coal producer New Hope also made takeover offers for Macarthur last month.

Commodities trader Noble Group is the main loser from the scrapped scrip-based transaction between Macarthur and Gloucester.

Noble holds 87.7% of Gloucester following its $7 cash takeover offer last year.

The Hong Kong-based company stood to have gained almost a quarter of Macarthur if the deal went through.

Noble could soon execute a separate $A12.60 a share offer to mop up the remaining Gloucester shares.

This offer was made last month on the condition the Macarthur-Gloucester transaction did not go ahead.

On Monday, Macarthur’s board advised shareholders to take no action on Peabody’s latest $15 per share offer, saying it would meet and assess the merits of the proposal.

CITIC Resources, ArcelorMittal and POSCO collectively own 47.4% of Macarthur.

Macarthur shares closed up 24c to $13.31 yesterday, while Gloucester shares closed up 5c $11.77.