Arch Resources and Consol Energy Plan $5 Billion Merger

Arch Resources Inc. and Consol Energy Inc. are reportedly in advanced discussions to merge, potentially creating a $5 billion coal mining company. The agreement could be announced as soon as this week, although it has not yet been finalized. Arch Resources, based in St. Louis, produces metallurgical and thermal coal and currently has a market value of $2.29 billion, having seen its shares fall by 24% this year. Consol Energy, headquartered in Canonsburg, Pennsylvania, has experienced a 5.8% drop in its shares, bringing its market value to $3.78 billion.

The merger would be part of a larger trend of increased dealmaking activity this summer, with over $725 billion in global deals announced since the start of June, a 20% rise from the same period last year. Both companies have declined to comment on the potential merger outside of normal business hours. If the deal proceeds, it could reshape the landscape of coal production and distribution, aligning the resources and capabilities of both firms to better compete in a challenging market environment.