Australia's Macarthur Coal Ltd. has refused a buyout offer made by US's Peabody Energy Corp. Both the companies are into the business of coal mining and the total worth of the takeover bid was A$ 3.3 billion or $3.04 billion.

Macarthur is now eyeing to takeover Gloucester Coal Ltd and said that it is now emphasizing most on this new plan.

The offer was refused by the Brisbane-based company stating the bid was "indicative, nonbinding and highly conditional." The offer, if accepted, would not have been in the best interest of the shareholders.

But the analysts have a similar take. As per them, the offer made by Peabody, was too low to succeed. But that could just be starting and Gloucester deal could be moved ahead for a better deal.

Peabody had made an offer for buying A$13 per share. Macarthur has a total market capitalization of A$3.1 billion at present.

This offer is one of the many bids happening in the Australian coal sector. The companies in this sector have seen their markets shrinking even though the price has risen because of increased demand in the Asian countries.