ArcelorMittal has decided to pull out from its joint venture with U.S.-based Peabody Energy for Macarthur Coal after issues of management control arises.

In a statement, ArcelorMittal said it will sell its interest to Peabody and the latter taking over full control of the Queensland-based coal miner.

ArcelorMittal and Peabody's joint venture vehicle, the PEAMCoal, earlier this week took a majority stake in Macarthur Coal with its $4.9 billion bid.

Nonetheless, ArcelorMittal wants bigger management control of the assets as it believes it would put up a large amount of capital in it. Peabody, however, wants a similar management control in place.

"Given the unanticipated level of acceptances into the offer, ArcelorMittal believes that it is more appropriate to focus its capital elsewhere in its business," it said in a statement.

Peabody chairman and CEO Gregory Boyce said in a separate statement that while his company expected a partnership with ArcelorMittal, "we have always preferred a larger ownership".

He said going it alone would speed up Peabody's ability to cut costs and benefit from the acquisition.

Peabody said it is getting a new loan of up to $US1 billion ($A962 million) and will use cash and borrowing to pay for Macarthur.

PEAMCoal had offered $16 per Macarthur share, which would increase to $16.25 if a 90 per cent stake in Macarthur was achieved by November 11.

The directors of Macarthur Coal have recommended all remaining shareholders accept the PEAMCoal Offer without delay.

Nominees of PEAMCoal are expected be appointed to the Macarthur board on Wednesday, at which time the current directors intend to step down.

A related report of the BusinessSpectator.com indicated that overnight, Macarthur said that sales for the three months to September came to 991,400 tonnes, down 21.7 per cent on a year earlier.

Saleable coal production for the quarter was 850,000, down 34.8 per cent on the prior corresponding period.