Additionally, the Commission argued that Peabody and Arch would control more than 60 percent of coal production in northeastern Wyoming if the companies go through with the joint venture.
In a statement, FTC Bureau of Competition Director Ian Conner reiterated, “Whatever the product, the antitrust laws protect customers from mergers that lead to higher prices. This joint venture would eliminate the substantial head-to-head competition between the two largest coal miners in the United States, and that loss of competition would likely raise coal prices to power-generating utilities that provide electricity to millions of Americans.”
Peabody and Arch intends to fight FTC in court
On the other hand, Peabody and Arch issued a joint statement indicating their intention to complete the joint venture by challenging the FTC’s decision. The companies believe that the transaction will “strengthen coal’s competitiveness with other energy sources and create substantial value for multiple stakeholders.”
