By Emily Dattilo
Arch Resources and Consol Energy announced Wednesday they are teaming up in an all-stock merger to create Core Natural Resources.
"Core Natural Resources will be a leading producer and exporter of high-quality, low-cost coals with offerings ranging from metallurgical to high calorific value thermal coals," according to a press release. The new company, as of Aug. 19, would have a market capitalization of about $5.2 billion.
Under the terms of the agreement, Arch Resources stockholders will receive 1.326 shares of Consol common stock for each share of Arch common stock owned.
Arch stockholders will own about 45% of Core Natural, while Consol stockholders will own about 55%.
The deal -- which is expected to close by the end of the first quarter of 2025, subject to regulatory approvals -- was forecast to generate $110 million to $140 million of annual cost and operational synergies.
Arch stock rose 2.9% to $130.47 in premarket trading, while Consol shares jumped 2.3% to $96.88.
Write to Emily Dattilo at emily.dattilo@dowjones.com
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(END) Dow Jones Newswires
August 21, 2024 08:10 ET (12:10 GMT)
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