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.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.