Aug 21 (Reuters) - Coal miner Arch Resources ( ARCH )

will merge with Consol Energy ( CEIX ) in an all-stock deal to

form a $5.2 billion entity, the companies said on Wednesday.

There has been a lack of investment in new coal mines amid

tight emission regulations. But the prospect of the fossil fuel

remaining part of the energy mix for years to come is likely to

underpin tight supplies and high prices.

The deal is expected to generate $110 million to $140

million of annual cost and operational savings in a period of

six to 18 months following the close of the transaction, which

is expected in the first quarter of 2025.

Arch stockholders will own approximately 45% of the

combined company, with Consol owning the rest.