Peabody and Arch to Combine U.S. Powder River Basin and Colorado Assets in Joint Venture

Davis Polk is advising Credit Suisse as financial adviser to Peabody Energy Corporation on its joint venture with Arch Coal, Inc. to combine the companies' Powder River Basin and Colorado assets. The joint venture, which is expected to unlock synergies with a pre-tax net present value of approximately $820 million, will be 66.5% owned by Peabody and 33.5% owned by Arch. The transaction is subject to regulatory approval and satisfaction of usual closing conditions.

Peabody is a leading global pure-play coal company and a member of the Fortune 500, serving power and steel customers in more than 25 countries on six continents. U.S.-based Arch Coal is a top coal producer for the global steel and power generation industries.

The Davis Polk corporate team includes partner Harold Birnbaum and associate Jason P. Thompson. All members of the Davis Polk team are based in the New York office.

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