Alpha Natural Resources Completes Merger With Foundation Coal Holdings

ABINGDON, Va. – Alpha Natural Resources announced Friday that it has completed the merger with Foundation Coal Holdings that was announced earlier this year.

Both companies’ stockholders approved the transaction at a special meeting Friday, Alpha said in a written news statement.

“With this merger, we have created a stronger, more diversified company with the balance, size and scale to compete successfully in today’s market environment,” Chief Executive Officer Kevin Crutchfield said in the statement.

The new company retains the Alpha Natural Resources name and its Abingdon headquarters and continues to trade under the symbol “ANR” on the New York Stock Exchange. The stock closed Friday at $33.31.

With the $2 billion all-stock transaction, Alpha is the nation’s third-largest coal producer, according to the company, operating more than 60 mines and 14 preparation plans, and controlling 2.3 billion tons of coal reserves. The merger also expands Alpha’s geographic footprint.

Company spokesman Ted Pile said Alpha is still exploring options for expanding its headquarters now that it’s doubled in size.

“We’ve actually rented out additional space in the Abingdon area for some of the people that will be coming down from Foundation,” Pile said. “We’re pretty maxed out already in this building, so we did have to take out additional space.”

Alpha might build a new headquarters building, but no decision on that idea has been made, he said, and it’s premature to speculate on the number of jobs that would be created here by the merger. Integrating the two companies will take a few months, he said.

“We’re very excited about this,” Pile said. “It’s great for us, and we’re involved in the community too, so it’s great for the community.”

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