KOL - Arch terminates proposed thermal asset JV after court backs FTC lawsuit
Arch Resources ([[ARCH]] -7.3%) says it will terminate its proposed thermal asset joint venture with Peabody Energy ([[BTU]] -18.8%), after a U.S. District Court blocked the deal between the two biggest U.S. coal miners.Arch CEO Paul Lang says the company will pursue strategic alternatives for its thermal assets, including a potential sale, as part of the goal to pivot toward steel and metallurgical markets."The decision has ramifications, not just for [Arch and Peabody], but for the entire coal industry, which we would argue is in dire need of consolidation," Seaport Global's Mark Levin says, adding the ruling likely will cause other U.S. producers "to think long and hard before consolidating."The ruling has more impact on Peabody since a large portion of earnings are heavily tied to its western U.S. operations, Levin says, seeing no reason to buy the shares on weakness given so much uncertainty; he also says bond investors
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Arch terminates proposed thermal asset JV after court backs FTC lawsuit