GHENT, WV (WVNS) – Two natural resources companies have announced a full merger to create a new company dedicated to providing better natural resources around the world.
According to a press release and social media posts, CONSOL Energy Inc. and Arch Resources have merged in an all-stock merger to form an entirely new company called Core Natural Resources.
Pennsylvania-based CONSOL Energy Inc. oversees mining operations at the Itmann Mine in Wyoming County, according to their website. Arch Resources’ website shows that they oversee operations at four different metallurgical mining complexes in West Virginia, one of which operates in Beckley.
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Both Jimmy Brock, CEO of CONSOL Energy, and Paul Lang, CEO of Arch Resources, issued the following statements regarding the recent merger announcement.
We are excited to combine our businesses to create a new industry leader that is ideally positioned to meet increasing demand for critical resources and energy around the world. Our assets are highly complementary, resulting in greater diversification across coal types, end uses and geographies. In addition, Core Natural Resources is expected to have a strong balance sheet, ample liquidity and robust free cash flow to deliver industry-leading returns on capital. We look forward to working closely together to continue to meet the global needs for steel, infrastructure and energy that are so critical to our daily lives and to realize the significant benefits and long-term value we believe this combination will create for our shareholders, employees, customers and the communities in which we live and work.
Jimmy Brock | Chairman and CEO, CONSOL Energy Inc.
According to the press release, under the agreement, Arch shareholders will receive 1.326 shares of CONSOL common stock for each share of Arch common stock they own.
This merger will combine two proven leadership teams and industry-leading operating platforms to create a leading North American coal producer with global reach and world-class mining and logistics capabilities. Core Natural Resources will benefit from the advantages of CONSOL’s growing industrial-focused marine thermal business, coupled with Arch’s significant presence in attractive global metallurgical coal markets. Together, we expect to achieve significant operating synergies through streamlined support functions, greatly enhanced marketing capabilities and a significantly expanded logistics network, which will enhance our ability to reliably and efficiently deliver coal to our global customers. Importantly, both companies are driven by a deep commitment to safety, environmental and social responsibility and operational excellence, and we will continue to build on these commitments as we work to deliver superior value to our shareholders.
Paul Lang | CEO, Arch Resources
The press release states that the merger is expected to be officially completed by the end of the first quarter of 2025, subject to further shareholder approval and other closing conditions.
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