Consol gets antitrust nod to proceed with ‘transformative’ deal
TORONTO (miningweekly.com) – US coal and natural gas producer Consol Energy on Monday said that the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 had expired, clearing the way forward for the company to close a “transformative” $3.5-billion deal through which it would sell five West Virginia thermal coal mines.
NYSE-listed Consol announced at the end of October that it would sell its Consolidation Coal Company subsidiary, which contained all five of its longwall coal mines in West Virginia, to a subsidiary of Murray Energy Corp.
The company would sell the mines for $850-million in cash and $184-million in future royalty payments for coal reserves. Murray would also assume about $2.4-billion of Consol's liabilities, mostly for worker pensions and other benefits.
Consol had previously said the mines included some of its oldest and most expensive operations, and that it would keep its cheaper coal mines in Pennsylvania and Virginia.
The closing of the transaction is subject to satisfying various other customary closing conditions, and Consol expected to close the transaction in the “next few weeks”.
On Monday, Consol stock traded as high as $36.47, but gains were under pressure early in the afternoon when the stock traded at $35.95 apiece. The stock had grown in value by 12.88% in the past year.
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