Arch Coal Merger Consolidates Coking Space

Things were already looking tight in the coking coal world before Arch Coal (ACI) decided....

Things were already looking tight in the coking coal world before Arch Coal (ACI) decided to pay $3.4 billion for International Coal Group (ICO). The deal pays International Coal shareholders a 32% premium over Friday’s close and will create the second-biggest U.S. supplier of metallurgical coal. As the buyer, Arch is taking a bit of a short-term beating in the market this morning, but take a look at the long-term prospects here.