Melbourne, Aug 31: Australia-based mining company Macarthur Coal has backed a revised takeover offer from ArcelorMittal and Peabody Energy Corporation.

ArcelorMittal and Peabody have raised their offer by three percent to 16 Australian dollars per share, valuing the deal at 4.8 billion Australian dollars.

Macarthur has been a takeover target in the wake of growing demand for coal, and the company has fended off four takeover bids in the last years.

"This is a major step forward in our acquisition process," the BBC quoted Gregory Boyce, chief executive of Peabody Energy, as saying in a statement.

ArcelorMittal and Peabody had made a formal offer for the Australian miner on August 1.

Macarthur said that since then "a number of parties" had shown interest in the company and took a look at its business.

However, despite the interest, none of those companies made a rival bid.

"Although it remains possible that a superior proposal might be made, none have emerged to date and there can be no assurances that any will emerge," Macarthur said.

Lakshmi Mittal-led ArcelorMittal is a global steel company headquartered in Avenue de la Liberte, Luxembourg.

It is the largest steel producing company in the world and is the market leader in steel for use in automotive, construction, household appliances and packaging.

The company was formed in 2006 by the merger of Arcelor and Mittal Steel.

It ranks 99th on the 2010 Fortune Global 500 list. (ANI)