By Dean Seal

Arch Resources and Consol Energy have agreed to combine in an all-stock merger of equals to create a new entity called Core Natural Resources.

The coal miners said Wednesday that the tie-up would make a premier North American natural resources company with a focus on global markets, generating between $110 million and $140 million of annual cost and operational synergies.

Under the terms of the deal, Arch shareholders would receive 1.326 shares of Consol stock for each Arch share they own.

The deal has been approved by the boards of both companies and is expected to close by the end of the first quarter of 2025, subject to approval from shareholders and regulators.

Consol Chief Executive Jimmy Brock is set to serve as executive chairman of the new company's board, while Arch Chief Executive Paul Lang would take the role of CEO.

Mitesh Thakkar, Consol's President and Finance, will serve as President and CFO of the combined company. George Schuller Jr., Arch's Chief Operating Officer, will retain the same role in the combined company.

In connection with the deal, Consol's board plans to issue a dividend of 25 cents per share. Both companies are permitted to pay quarterly dividends of up to 25 cents a share to their stockholders while the merger is pending. The companies will suspend share repurchases until the transaction is completed.

Write to Dean Seal at dean.seal@wsj.com

(END) Dow Jones Newswires

August 21, 2024 07:29 ET (11:29 GMT)

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