(Bloomberg) — 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.
The new company will own 11 mines producing thermal coal for power plants and metallurgical coal for making steel. While the dirtiest fossil fuel is a major driver of climate change, it’s also among the commodities most crucial to the global economy.
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