CONSOL Energy to merge with St. Louis mining and processing company
Southpointe-based CONSOL Energy is merging with a St. Louis coal mining and processing company, it was announced Wednesday.
The combination of CONSOL with Arch Resources will create a new entity called Core Natural Resources in a merger valued at $5 billion. The new, merged company will be based at Southpointe.
The merger will be carried out through a stock-for-stock exchange.
“We are excited to bring our companies together to create a new industry leader that is ideally positioned to meet the rising demand for critical resources and energy around the world,” said Jimmy Brock, chairman and chief executive officer for CONSOL. In a news release, Brock added, “Our assets are highly complementary, resulting in increased diversification across coal types, end uses and geographies. … We look forward to working closely together to continue meeting the world’s steel, infrastructure and energy needs…”
Brock’s counterpart at Arch, CEO Paul Lang, explained that the merger “will join the two proven leadership teams and best-in-sector operating platforms to establish a premier North American coal producer with worldwide reach and world-class mining and logistics capabilities.”
When CONSOL and Arch are under the same umbrella, they will own 11 mines, including the Bailey, Enlow Fork and Harvey mines. CONSOL says its mining complex in Washington and Greene counties is the largest underground mine complex in North America. Both companies sold an aggregate of 101 million tons of coal in 2023 that was used in steelmaking, power-generation and industrial uses. Both companies say the merger will boost their access to global markets thanks to ownership interests in two East Coast terminals and connections to ports on the West Coast and the Gulf of Mexico.
Both companies say the merger will increase profits and lower costs. The combined company is expected to generate $110 million to $140 million annually within six to 18 months of the merger’s completion.
The board of directors of the combined company will have eight directors, with four directors being selected by CONSOL and four being selected by Arch. Brock will be the executive chairman of the board of directors and Lang will be the chief executive officer and member of the board. The company will be headquartered at Southpointe because of its proximity to coal mining facilities and export operations.
Once the deal is completed, CONSOL stockholders will own 55% of the company’s stock and Arch shareholders will have 45%. The merger is expected to be complete by the end of 2025, subject to shareholder and regulatory approval.