Fuel producer, Arch Coal, will acquire International Coal Group (ICG), Financial Times reports. Arch will pay $14.60 per ICG share, mounting to a total of $3.4 billion in cash. Morgan Stanley will serve as the financial adviser to Arch, while UBS is the financial adviser to ICG, adds Reuters. The combined company’s metallurgical coal production is expected to rise from 11 million tons in 2011 to 14-15 million tons over the next three to four years.
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