Amid plenty of controversy and attempts by shareholders in the acquired company to block the deal, Alpha Natural Resources wrapped up its $7.1 billion purchase of rival Massey Energy, the largest coal miner in Central Appalachia, today. The combined company will retain the Alpha Natural name.
Over the past week, multiple lawsuits seeking to block Massey (MEE) from moving forward with sale were filed, but courts in Delaware and West Virginia denied those requests. Today, 99.5% of Massey shares approved the purchase and 98% of Alpha Natural shares voted in favor of the deal.
Alpha Natural (ANR) will now become the largest U.S. producer of metallurgical coal and the world's third-largest maker of the coal grade that is highly sought after by Asian steelmakers behind BHP Billiton (BHP), the world's largest mining company, and Canada's Teck Resources (TCK).
The new company will operate 150 mines, 40 coal-preparation plants and employ 14,000 people, according to the Wall Street Journal. Virginia-based Alpha Natural expects cost savings of $150 million over the next year thanks to the Massey acquisition.