China's Citic Group and its subsidiary Citic Resources Holdings have agreed to accept the $5 billion takeover offer from Peabody Energy and ArcelorMittal for Macarthur Coal Ltd.

The arrangement of Citic's acceptance of A$16 a share will allow Peabody Energy and ArcelorMittal to control Macarthur Coal Ltd. by more than 49 per cent. The two companies said they intend to further raise their bid to A$16.25 a share if they gain control of Macarthur Coal Ltd. of at least 90 per cent.

Citic Group and Citic Resources Holdings were the biggest shareholders of Macarthur Coal Ltd., with a combined 25.2 per cent stake the Australian producer.

Acquiring Macarthur Coal Ltd. will give Peabody Energy and ArcelorMittal ownership of steelmaking coal mines in Queensland, the world's biggest exporter of the raw commodity.

It would also be the latest of coal mine acquisition deals in Australia.

"We are pleased that these shareholders have decided to accept our offer," Gregory Boyce, Peabody Energy chief executive officer said in the statement. "We look forward to transitioning to the next phase of Macarthur Coal Ltd.'s future."

"With the latest positive developments, we now urge all Macarthur shareholders to accept our offer as soon as possible, in order to maximize their chances of receiving the increased offer price," said Aditya Mittal, CFO and Member of the Group Management Board at ArcelorMittal.

Share of Macarthur Coal Ltd. closed on Thursday in Sydney at A$16.08.