Arch Resources and Consol are among the biggest US coal miners. — Bloomberg
NEW YORK: Arch Resources Inc is nearing an agreement to merge with Consol Energy Inc in a combination that would create a US$5bil coal mining company, according to people familiar with the matter.
An agreement could be announced as soon as this week, said the people, who asked not to be identified because the discussions are private. A deal hasn’t been finalised and talks could still fall apart, they added.
St Louis-based Arch Resources produces metallurgical and thermal coal. It has a market value of US$2.29bil after its shares have sunk 24% this year.
Consol Energy, based In Canonsburg, Pennsylvania, has seen its shares fall 5.8% this year, giving it a market value of US$2.78bil.
Arch Resources and Consol are among the biggest US coal miners, an industry facing grim long-term prospects as the shift to cleaner fuels progresses.
Any transaction would add to a surprise increase in summer dealmaking.
More than US$725bil of deals have been announced globally since the start of June, up 20% from the same period in 2023, according to data compiled by Bloomberg.
Representatives for Arch Resources and Consol Energy couldn’t be immediately reached for comment outside regular business hours. — Bloomberg
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