Arch Resources and Consol Energy Set to Form $5 Billion Coal Giant

Arch Resources is close to merging with Consol Energy, potentially forming a $5 billion coal mining company. The agreement could be announced this week, though talks are still ongoing. The merger comes amid increased dealmaking in the energy sector, driven by higher cash flows from profits in previous years.

Arch Resources is on the verge of merging with Consol Energy, potentially creating a $5 billion coal mining powerhouse, Bloomberg News reported Tuesday, citing sources familiar with the negotiations.

An official announcement could come as soon as this week, although the deal hasn't been finalized and discussions could still unravel. Both companies declined to comment when contacted by Reuters outside of normal business hours.

Arch Resources, headquartered in Missouri, boasts a market value of $2.29 billion, while Consol Energy is valued at $2.78 billion, according to LSEG data. Energy industry dealmaking soared 57% last year as companies ramped up development spending amid higher cash flows from profitable prior years, Ernst & Young noted in a recent report.

(With inputs from agencies.)