Alpha Natural Resources on Tuesday said it has acquired Foundation Coal Holding for $2.0 billion, after gaining higher first quarter profit, making the company to be the third largest coal producer in America.
It bought Foundation Coal for $1.4 billion, with its 50 million new shares of common stocks and about $530 million debts.
The said merger deal would have a market capitalization of $3.5 billion and enterprise value of $4.0 billion.
Today's announcement is exciting and rewarding for our stockholders and our employees. Foundation stockholders not only receive a significant premium, but they also gain an opportunity to participate in the upside potential of a diversified company that possesses the scale and asset quality to successfully compete in today's challenging market environment and on an expanded global stage,” James Roberts, chairman and CEO of Foundation, commented.
Under the terms of the definitive merger agreement, Foundation stockholders will receive 1.084 shares of the new company for each share of Foundation, and each share of Alpha will automatically become one share of the combined company.
Recently, the company posted higher first quarter earnings despite prices falling in the current economic downturn .
Meanwhile shares of alpha fell $1.82 to 6.31 Percent at $27.04 in the regular trading today.