Peabody And Arch’s Combine U.S. Powder River Basin And Colorado Assets


Davis Polk advised 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.

Credit Suisse and Lazard acted as financial advisers to Peabody for the transaction. Cravath, Swaine & Moore LLP and Akin Gump Strauss Hauer & Feld LLP acted as legal advisers to Peabody. Goldman Sachs & Co. LLC acted as financial adviser to Arch. Latham & Watkins LLP and Baker Botts LLP acted as legal advisers to Arch.

The Davis Polk corporate team includes partner Harold Birnbaum (Picture) and associate Jason P. Thompson.

The Cravath team was led by partners Richard Hall and Andrew C. Elken and includes associates Andrew M. Wark, Samantha B. Zager and Olivia Ya Huang on M&A matters; partners Christine A. Varney and Julie A. North and senior attorney Jesse M. Weiss on antitrust matters; partners Andrew W. Needham and Kara L. Mungovan and associate Arvind Ravichandran on tax matters; partner Eric W. Hilfers and associates Jana I. Hymowitz and Sally Ye on executive compensation and benefits matters; and partner Matthew Morreale and senior attorney Annmarie M. Terraciano on environmental matters. Summer associate Jason O. Rooindej also worked on M&A matters.

The Baker Botts team is comprised of partners Steve Weissman, Michael Perry, and Tom Fina, assisted by Counsel David Cardwell and associates Matthew Adler, Jarad Daniels, and Steve Pet.

Involved fees earner: Matthew Adler – Baker Botts; David Cardwell – Baker Botts; Jarad Daniels – Baker Botts; Thomas Fina – Baker Botts; Michael Perry – Baker Botts; Steven Pet – Baker Botts; Stephen Weissman – Baker Botts; Andrew C. Elken – Cravath Swaine & Moore; Richard Hall – Cravath Swaine & Moore; Eric Hilfers – Cravath Swaine & Moore; Olivia Ya Huang – Cravath Swaine & Moore; Jana Hymowitz – Cravath Swaine & Moore; Matthew Morreale – Cravath Swaine & Moore; Kara Mungovan – Cravath Swaine & Moore; Andrew Needham – Cravath Swaine & Moore; Julie North – Cravath Swaine & Moore; Arvind Ravichandran – Cravath Swaine & Moore; Jason Rooindej – Cravath Swaine & Moore; Annmarie Terraciano – Cravath Swaine & Moore; Christine Varney – Cravath Swaine & Moore; Andrew Wark – Cravath Swaine & Moore; Jesse Weiss – Cravath Swaine & Moore; Sally Ye – Cravath Swaine & Moore; Samantha Zager – Cravath Swaine & Moore; Harold Birnbaum – Davis Polk & Wardwell; Jason Thompson – Davis Polk & Wardwell;

Law Firms: Baker Botts; Cravath Swaine & Moore; Davis Polk & Wardwell;

Clients: Arch Coal, Inc.; Credit Suisse; Peabody Energy;