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Sunday
Jan302011

Massey Energy to Merge With Alpha

Photo Courtesy - Getty Images(RICHMOND, Va.) -- Massey Energy, the company at the center of the April 2010 mine collapse that killed 29 men at the company’s Upper Big Branch Mine in West Virginia, has agreed to be taken over by Abington, Va.-based Alpha Natural Resources.

The combination, valued at $8.5 billion, would award Massey stockholders 1.025 shares of Alpha common stock and $10 for each share of Massey common stock.

Stockholders from both companies still need to approve the deal before it can close.

“This transaction represents a tremendous opportunity for Massey to partner with our Central Appalachian neighbor, Alpha, to create a new industry leader,” said Massey CEO Baxter Phillips, Jr.

“We have always respected Alpha’s passion for this business and we believe this is a natural and logical combination,” Phillips said.

A combined operation would include more than 110 mines and coal reserves of approximately 5 billion tons, according to a joint press release issued Saturday.

If approved, the transaction would be on target to close mid-2011.

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