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
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
August 21, 2024 08:10 ET (12:10 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
免責聲明：投資有風險，本文並非投資建議，以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請，作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考，不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證，投資者應自行研究並在投資前尋求專業建議。