Arch Resources, Consol Energy To Merge In All Share Deal; Arch Up In Pre-Market

(RTTNews) - Arch Resources, Inc.(ARCH), and Consol Energy Inc. (CEIX) announced on Wednesday that they have inked a deal for an all-stock merger of equals to create, Core Natural Resources, to focus on global markets.

Under the deal, expected to be closed by the end of the first-quarter of 2025, Arch stockholders will receive 1.326 shares of Consol for each share of Arch.

Post transaction, Arch stockholders will own around 45 percent of Core Natural, and Consol stockholders will own approximately 55 percent.

The merger is expected to generate $110 million to $140 million of annual cost and operational synergies within six to 18 months following the close of the transaction.

Core Natural Resources, with a new ticker, will be a producer and exporter of high-quality, low-cost coals with offerings ranging from metallurgical to high calorific value thermal coals.

Arch and Consol sold an aggregate of around 101 million tons of coal in 2023 to steelmaking, industrial, and power-generation customers.

Core Natural Resources will be led by Jimmy Brock, chairman and CEO of Consol, as executive chairman, while Paul Lang, CEO of Arch will serve as chief executive.

In connection with the deal, the Consol Board will pay a cash dividend equal to $0.25 per share on September 13, to shareholders of record as of August 30.

In addition, each of Arch and Consol is permitted to pay quarterly dividends of up to $0.25 per share to their respective stockholders during the pendency of the merger.

ARCH was trading up by 3.35 percent at $130.99 in the pre-market trade on the New York Stock Exchange.