Deals
Arch Merges With Consol to Create a Coal-Export Powerhouse
- The $2.3 billion tie-up includes metallurgical, thermal mines
- Deal ‘demonstrates our confidence in the future of coal’
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US coal producer Arch Resources Inc. agreed to merge with rival Consol Energy Inc. in a $2.3 billion deal aimed at creating a North American mining heavyweight to deliver the fuel around the world.
The companies announced the transaction in a statement Wednesday after the deal talks were reported earlier by Bloomberg. Under the terms of the merger agreement, Arch stockholders will receive a fixed exchange ratio of 1.326 shares of Consol stock for each share of Arch common stock. Consol shareholders will own about 55% of the combined company, to be called Core Natural Resources.