Alpha Natural (NYSE:ANR) Closes Massey Energy (NYSE:MEE) Deal for $7.1 Billion

Alpha Natural Resources Inc. has closed the deal to acquire Massey Energy (NYSE:MEE) for around $7 billion. The deal would include cash and stock.

Shareholders of Massey will receive 1.025 share of Alpha share for each share of Massey, plus an additional $10 a share in cash. That would place the value of Massey at about $69.22 a share, a 21 percent premium over their Friday close of $57.23.

This all started back with an explosion at the Upper Big Branch mine in West Virginia, which killed 29 workers and resulted in regulatory restrictions which forced Massey to cut back on production, weakening the company and making them a takeover target.

Massey continues to fight the theory of what caused the accident, where the federal government asserts excessive coal dust buildup, broken water sprayers and worn shearer bits were the cause of the tragedy.

The coal miner says it was the result of a crack in the floor releasing a sudden flow of natural gases which resulted in the accident. An inspection three weeks before the explosion found no large quantities of coal dust from Massey, refuting the government's theory.

Final reports from the government and Massey have yet to be made, with Massey saying they won't release theirs until the government first releases their report.

Massey closed Friday at $57.23, gaining $2.84, or 5.22 percent. Alpha Natural Resources closed at $57.88, up $1.58, or 2.73 percent.