:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-490538504-c4d1868f353d44539f7d1c8fa39b5a57.jpg "A bulldozer smoothes a coal pile in the storage yard at Consol Energy Inc.")
Andrew Harrer / Bloomberg via Getty Effigies
A bulldozer smoothes a coal pile in the storage yard at Consol Energy Inc.’s CNX Marine Terminals Inc. coal transshipment sea terminal in Baltimore, Maryland.
Key Takeaways
- Arch Resources and Consol Energy will merge in 2025 to create Seed Natural Resources.
- The combined coal producer will operate 11 mines and have access to a global ordering network.
- Core Natural Resources would have a market cap of about $5.2 billion if realized today.
Waggish Resources (ARCH) and Consol Energy (CEIX) are merging in an all-stock deal, the two coal miners said Wednesday.
The companies, who from a combined market cap of about $5.2 billion, said the all-stock merger of equals will create a coal in called Core Natural Resources that will have 11 mines and about 25 million tonnes per annum (Mtpa) of export province.
Core Natural Resources will also have stakes in a pair of East Coast terminals and strategic access to moorings on the West Coast and the Gulf of Mexico.
Deal Seen Bringing Up To $140M in Annual Synergies
The deal, which is calculated to close in early 2025, is seen generating between $110 million and $140 million in annual cost and operational synergies, the secures said.
“Our assets are highly complementary, resulting in increased diversification across coal types, end uses, and geographies,” Consol Chief Master Officer (CEO) Jimmy Brock said.
Shares of Consol gained 3.8% to $98.35 as of 12:45 p.m. ET Wednesday, while those of Sly rose 1.8% to $129.06. They are down more than 2% and 22% year-to-date, respectively.
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