Business & Tech
Arch Coal Announces Major Deal
Creve Coeur-based energy company buys rival in $3.4 billion deal.
announced Monday that it is poised to become the nation's 2nd leading metallurgical coal producer, with the purchase of a West Virginia-based International Coal Group, Inc., a rival company, in a deal valued at more than $3 billion dollars.
A statement released Monday by Arch Coal said the board of directors for both companies had approved the deal, which will start first as a buyout of remaining shares of International Coal Group, and later a merger. The deal is expected to close by July 1.
Arch Coal, based in Creve Coeur, currently employs roughly 200 people at the CityPlace company headquarters. An Arch Coal spokeswoman said while a few new jobs might move to the area as a result, she described the number as "negligible".
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A press release indicated part of the appeal of the deal was what the company called "one of the industry's most balanced operating portfolios. With the addition of ICG's operations, Arch will become the only U.S. coal producer with assets in every major U.S. coal supply basin."
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