Record Valuation Makes Massey Blast Costliest Merger: Real M&A

Coal demand is so great Alpha Natural Resources Inc. is buying Massey Energy Co. in the most expensive deal in the industry’s history, 10 months after Massey caused the worst U.S. coal mining accident in four decades.

The takeover values Massey at $8.5 billion, including debt, or 23.3 times earnings before interest, taxes, depreciation and amortization last year, more than any coal acquisition of $1 billion or more, according to data compiled by Bloomberg. A record $30 billion in deals may be completed in the industry this year as acquirers pay an average 33 percent premium. That’s also the highest in at least a decade and double the historical average.