The companies announced Wednesday that the required waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, also known as the HSR Act, expired on May 31.
That expiration without issue satisfies one of the necessary conditions for the company’s offer; however, other customary conditions – including the tender of a majority of outstanding ICG common stock shares – are still pending.
The tender offer to acquire all ICG outstanding shares, at a price of $US14.60 per share in cash, will expire the morning of June 14.
Arch’s $3 billion acquisition of ICG, first announced in May, will increase the producer’s reserves by 25% to 5.5 billion tons. Arch will be the US’ second-largest coking coal producer after Alpha once the acquisitions are completed.
As part of the takeover Arch will acquire ICG’s 13 active mines, along with one major mining complex under development, across three coal basins in Illinois, Kentucky, West Virginia, Maryland and Virginia.
Arch expects its 2011 pro-forma metallurgical coal sales to reach 11Mt.
Over the next three years, Arch anticipates met coal volumes from the combined operations to expand to more than 14Mtpa, with further opportunities for revenue growth emerging from significant blending opportunities between ICG's low-volatile and rank A high-volatile met coals and Arch's existing rank B high-volatile met products.
The merger of Arch and ICG is expected to be completed in this month.
