Arch Resources and Consol Energy are in advanced discussions to merge in an all-stock transaction, forming a new coal mining entity valued at approximately $5.4 billion. The merger will combine the strengths of both companies, which are significant players in the U.S. coal industry. Reports indicate that the deal is being characterized as a merger of equals, reflecting the competitive landscape of coal production. The announcement has positively impacted stock prices, with Arch Resources rising by 5.1% and Consol Energy increasing by 4.1% in pre-market trading.