Summary
NEW YORK - Coal demand is so great Alpha Natural Resources Inc. is buying Massey Energy Co. in the most expensive deal in the industry's history, 10 months after Massey caused the worst U.S. coal mining accident in four decades.
The takeover values Massey at $8.5 billion, including debt, or 23.3 times earnings before interest, taxes, depreciation and amortization last year, more than any coal acquisition of $1 billion or more, according to data compiled by Bloomberg. A record $30 billion in deals may be completed in the industry this year as acquirers pay an average 33 percent premium. That's also the highest in at least a decade and double the historical average.See the full content of this document
Extract
World Demand Driving Coal Deals
Buyers are being forced to spend more than ever to secure coal reserves in nations from Canada to Mozambique as demand from steel and power producers in China and the develop...
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