Coal miner Murray Energy Corp. said Monday that it will pay about $1.4 billion in cash to buy a controlling stake in Foresight Energy LP and its subsidiary.
Combined, the companies will control 9 billion tons of coal reserves, Murray Energy said.
Continue Reading Below
The deal, which is expected to close in the second quarter, will give Murray Energy about a 50 percent stake in Foresight Energy LP and an 80 percent stake in the subsidiary, Foresight Energy GP. Christopher Cline, Foresight Energy's founder, will keep a 35 percent stake in Foresight Energy LP and a 22.5 percent interest in Foresight Energy GP.
After the deal closes, Murray Energy will remain privately held and Foresight Energy LP will remain a publicly traded company. Murray Energy said it will pay for the deal by taking on debt.
Murray Energy, based in St. Clairsville, Ohio, owns 12 coal mines. St. Louis-based Foresight has 4 coal mines.
Shares of Foresight Energy LP rose 4 cents to $15.84 in morning trading Monday.