Davis Polk & Wardwell is advising Patriot Coal Corporation on its $709 million acquisition of Magnum Coal Company. Under the terms of the agreement, Magnum shareholders will receive approximately 11.9 million shares of newly issued Patriot Coal common stock. Patriot will also assume net debt estimated at $150 million. The transaction is subject to certain regulatory and shareholder approvals and customary closing conditions. The proposed transaction is expected to close around mid-year.

Patriot Coal, based in St. Louis, Missouri, is a leading producer and marketer of coal in the eastern United States, with 10 company-operated mines and numerous contractor-operated mines in Appalachia and the Illinois basin. West Virginia-based Magnum Coal is one of the largest and lowest-cost producers in Central Appalachia, operating 12 mines and 7 preparation plants.

The Davis Polk corporate team includes partner William L. Taylor and associates Ajay Lele, Brenda Chen, Daniel Smit and Nupur Chandna (not yet admitted). Partners E. Waide Warner Jr. and Sartaj Gill and associate Gavin R. Skene are providing credit advice. Partner Gail A. Flesher, counsel Betty Moy Huber and associates Dessislav Dobrev and Heather Daly are providing environmental advice. The tax team includes partner Kathleen L. Ferrell and associate Craig A. Phillips. Partner Joel M. Cohen and associates Stephen M. Pepper, Crystal McKellar and Julie L. Hassman are providing antitrust advice. Partner Sarah E. Beshar and associate Alain Kuyumjian are providing capital markets advice. All members of the Davis Polk team are based in the New York office.