Arch Merges With Consol to Create a Coal-Export Powerhouse (1)

US coal producer Arch Resources Inc. agreed to merge with rival Consol Energy Inc.in a $2.3 billion deal aimed at creating a North American mining heavyweight to deliver the fuel around the world.

The companies announced the transaction in a statement Wednesday after the deal talks were reported earlier by Bloomberg. Under the terms of the merger agreement, Arch stockholders will receive a fixed exchange ratio of 1.326 shares of Consol stock for each share of Arch common stock. Consol shareholders will own about 55% of the combined company, to be called Core Natural Resources.

The new company will ...