Alpha Natural Resources ( ANR) plans to acquire Foundation Coal ( FCL) in an all-stock transaction valued at about $2 billion.

The deal includes the assumption of about $530 million of debt.

The combined company will be the third-largest coal producer in the U.S., with 2008 pro forma revenue of $4.2 billion, the companies said in joint press release Tuesday.

Foundation stockholders will receive 1.084 shares of the new company for each share held, or about $32.73 a share. That price is a premium of 41% over Foundation Coal's closing price Monday.

Alpha Natural stockholders will own 59% of the new company, while Foundation Coal shareholders will own the remaining 41%.

Both boards approved the deal, which is targeted to close later this year.
Copyright 2008 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.

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