Peabody Energy, Arch Coal Form JV

(RTTNews) - Peabody Energy Corp. (BTU) and Arch Coal (ARCH) said Wednesday that they agreed to merge their Powder River Basin and Colorado assets.

Peabody will own 66.5 percent in the venture, while Arch will take 33.5 percent stake.

Peabody will serve as operator and also market coal. Both the companies have agreed to share profit proportionate to their ownership in the joint venture.

"Upon closing, Peabody and Arch will each contribute its active Powder River Basin and Colorado mines, as well as related assets and liabilities, into the joint venture," the companies said.