An Abingdon-based coal producer has taken over a Richmond coal producer for $7.1 billion.
Alpha Natural Resources, announced its acquisition of Massey Energy Company Wednesday, a deal which was first announced in late January.
Alpha will now control the second largest coal reserve base in the country, with approximately five billion tons in the major coal basins of Central and Northern Appalachia, the Illinois Basin and the Powder River Basin.
The merging of the two companies, which will maintain the Alpha name, has also made them a global leader in metallurgical coal supply.
Massey stockholders received 1.025 shares of common stock of Alpha and $10 cash for each share of Massey common stock they owned at yesterday’s closing according to Alpha’s website.
Massey stockholders now own about 46 percent and stockholders of Alpha prior to the merger now own approximately 54 percent of Alpha.
As a result of the merger, the coal company will employ about 14,000 people and operate 150 mines and 40 coal preparation facilities in Appalachia and the Powder River Basin.
Alpha founded in 2002, supplies metallurgical coal that’s used in the steel-making process and also supplies thermal coal to electric utilities and manufacturing industries across the country.
Massey dates back to 1920 when it was founded by A.T. Massey in Richmond. The company was thrust into the national spotlight after a major disaster at its Upper Big Branch mine in resulted in the death of 29 miners in April 2010. The mining operation was later found to be rife with safety violations and CEO Don Blankenship stepped down in December. A federal investigation is underway for potential criminal negligence.
An Abingdon-based coal producer has taken over a Richmond coal producer for $7.1 billion.
Alpha Natural Resources, announced its acquisition of Massey Energy Company Wednesday, a deal which was first announced in late January.
Alpha will now control the second largest coal reserve base in the country, with approximately five billion tons in the major coal basins of Central and Northern Appalachia, the Illinois Basin and the Powder River Basin.
The merging of the two companies, which will maintain the Alpha name, has also made them a global leader in metallurgical coal supply.
Massey stockholders received 1.025 shares of common stock of Alpha and $10 cash for each share of Massey common stock they owned at yesterday’s closing according to Alpha’s website.
Massey stockholders now own about 46 percent and stockholders of Alpha prior to the merger now own approximately 54 percent of Alpha.
As a result of the merger, the coal company will employ about 14,000 people and operate 150 mines and 40 coal preparation facilities in Appalachia and the Powder River Basin.
Alpha founded in 2002, supplies metallurgical coal that’s used in the steel-making process and also supplies thermal coal to electric utilities and manufacturing industries across the country.
Massey dates back to 1920 when it was founded by A.T. Massey in Richmond. The company was thrust into the national spotlight after a major disaster at its Upper Big Branch mine in resulted in the death of 29 miners in April 2010. The mining operation was later found to be rife with safety violations and CEO Don Blankenship stepped down in December. A federal investigation is underway for potential criminal negligence.