Consol Energy and Arch Resources to merge to create $5 bln coal mining entity (updated)

Arch Resources

21/08/2024 12:08

(Adds details from paragraph 2 onwards)
       Aug 21 (Reuters) - Coal miner Arch Resources  ARCH.N 
will merge with Consol Energy  CEIX.N  in an all-stock deal to
form a $5.2 billion entity, the companies said on Wednesday.
    There has been a lack of investment in new coal mines amid
tight emission regulations. But the prospect of the fossil fuel
remaining part of the energy mix for years to come is likely to
underpin tight supplies and high prices.
        The deal is expected to generate $110 million to $140
million of annual cost and operational savings in a period of
six to 18 months following the close of the transaction, which
is expected in the first quarter of 2025.
  
        Arch stockholders will own approximately 45% of the
combined company, with Consol owning the rest.  
  
             

    

 (Reporting by Sourasis Bose in Bengaluru; editing by Alan
Barona)
 ((Sourasis.Bose@thomsonreuters.com))