Walter Energy to Acquire Western Coal for $3bn

8 December 2010 (Last Updated December 8th, 2010 18:30)

US-based Walter Energy will acquire all outstanding shares of Canada’s Western Coal for a total enterprise value of $3.3bn. The firms have entered into an arrangement agreement for Walter Energy to acquire Western Coal for $11.50 a share. Walter Energy said the transaction will

US-based Walter Energy will acquire all outstanding shares of Canada’s Western Coal for a total enterprise value of $3.3bn.

The firms have entered into an arrangement agreement for Walter Energy to acquire Western Coal for $11.50 a share.

Walter Energy said the transaction will create the world's leading, publicly traded 'pure-play' metallurgical coal producer, with total coal reserves of approximately 385 million tons and a significant and growing production profile.

The combined entity is expected to produce in excess of 20 million tons of coal by 2012.

Walter Energy's interim CEO Joe Leonard said the combined production capacity and geographic footprint helps the firm benefit from favourable sector dynamics driven by increased steel production in markets such as China, India and Brazil.