Coal companies Arch Resources and Consol Energy to merge into one company based in Penn.

Two coal giants are merging, which will create a $5.2 billion coal company called Core Natural Resources. 

Arch Resources, which operates mines in Colorado, West Virginia and Wyoming, has agreed to merger of equals, meaning two firms of similar size forming a single company, with Consol Energy, according to a joint statement from the companies. 

Core Natural Resources will be headquartered in Canonsburg, Pennsylvania. 

The combination is expected to generate $110 million to $140 million of annual cost and operational synergies within six to 18 months following the close of the transaction, according to the statement.