Menu
Arch Resources, Inc. (ARCH) entered into a merger agreement on August 21, 2024, with Consol Energy Inc. (CEIX) to form a leading North American natural resource company Core Natural Resources which would be valued at about $5.2 billion.
Under the terms of the agreement, Arch stockholders will receive a fixed exchange ratio of 1.326 shares of Consol common stock for each share of Arch common stock owned, at about $125.61 per share, representing a discount of 0.89% based on the stock’s last close.
Arch stockholders will hold approximately 45% of the combined company, while Consol shareholders will own the remaining portion.
Arch Resources is a top producer of metallurgical products for steel, running efficient mines across the U.S. and selling its products to companies that make steel and power. Based in Saint Louis, Missouri, it has been established since 1969.
Consol Energy is based in Canonsburg, Pennsylvania, and produces and exports high-quality thermal and metallurgical coal. It operates major mines and a coal export terminal, serving both U.S. and international customers.
The newly formed Core Natural Resources will trade under a ticker symbol that has not yet been disclosed.
The merged company will operate 11 mines across six states, producing thermal and metallurgical coal for power generation and steel-making.
The deal is anticipated to yield $110 million to $140 million in annual cost and operational savings within six to 18 months after the transaction closes, which is projected for the first quarter of 2025.
Under the agreement, the Consol Board declared a dividend of $0.25 per share, which will be paid in cash on September 13, 2024.
Arch’s current EV/EBITDA (TTM) ratio is 4.47, below the sector median of 10.13.
Arch’s CEO, Paul Lang, will lead the combined entity, Core Natural Resources, as Chief Executive Officer. Mitesh Thakkar, Consol’s President and Chief Financial Officer, will serve as President and CFO. Jimmy Brock, Chairman and Chief Executive Officer of Consol, will take on the role of Executive Chairman of Core Natural Resources’ Board of Directors.
Core Natural Resources will be headquartered in Canonsburg, Pennsylvania, to take advantage of its proximity to most of its mining and export operations, while also maintaining a presence in St. Louis.
For more details regarding this M&A transaction, please visit the Deal Metrics page here:
Deal Metrics for the merger of Arch Resources Inc. (ARCH) with Consol Energy Inc. (CEIX)
The Deal Metrics page for each merger or acquisition includes:
– A spread history chart of the merger from announcement through eventual completion or failure.
– Every event as the merger progresses through the expiration of the HSR period, various regulatory approvals, shareholder votes, etc.
– News and SEC filings.
– A history of deal updates.
– And much more.
Disclaimer: This article is provided for informational purposes only. Please perform your own due diligence before buying or selling any securities mentioned in this article. We do not warrant the completeness or accuracy of the content or data provided in this article.
Editor’s Note: Baranjot Kaur contributed to this article