Coal Mining News: Alpha Natural completes acquisition of Massey Energy

Alpha Natural Resources closed its purchase of fellow US coal producer Massey Energy after shareholders in both companies approved the transactions at separate meetings on Wednesday.

Massey, which owned the Upper Big Branch mine where 29 workers died in an explosion last April, agreed in late January to be acquired for 1.025 Alpha shares and $10 a share in cash. Crushing Machine

After closing, Alpha shareholders now own 54% and Massey 46% of the combined company, which owns around 150 coal mines and 40 preparation plants.

The group controls the second-biggest coal reserve base in the US, with about five-billion tons in Central and Northern Appalachia, the Illinois Basin and the Powder River Basin.

The company is also the second-biggest US coal producer by market value, and the top supplier of metallurgical, or steel-making, coal in the country.  Iron Ore Mining

“Alpha is now a global industry leader,” said CEO Kevin Crutchfield.

“This combination significantly enhances Alpha’s industry position through the inclusion of complementary mining assets and a combined workforce that is 14 000 people strong.”

A group of shareholders in Massey had sought court approval to block the transaction, as they wanted Massey management and directors to be held responsible for last year’s disaster and for alleged mismanagement of the company.

But courts in West Virginia and Delaware both said on Tuesday they would not stop the acquisition from going ahead.

Massey Energy shares closed 1.3% lower on Wednesday, at $65.14 apiece in New York. Alpha Natural fell 2.5%, to $53.40 a share.

Last month, an independent panel issued a report that found Massey Energy and its management responsible for the explosion at the Upper Big Branch mine.

A federal investigation into the incident by the Mines Safety and Health Administration has yet to be completed.   Crushers