The US Federal Trade Commission (FTC) has rejected a proposed joint-venture (JV) between Peabody Energy and Arch Coal, the two largest coal-mining companies in the United States, considering that such a JV would eliminate competition.
In June 2019, Peabody Energy and Arch Coal announced plans to set up a joint venture (with respective stakes of 66.5% and 33.5%) to combine their assets in the Southern Powder River Basin (SPRB, Wyoming) and Colorado. This includes Peabody's North Antelope Rochelle Mine (NARM) and Arch's Black Thunder Mine, the Caballo, Rawhide and Coal Creek mines in Wyoming and the West Elk and Twentymile mines in Colorado.
According to the FTC, the two companies produced more than 60% of all the coal mined in the Southern Powder River Basin, with captive customers (coal-fired power plants with high fixed costs) that can not easily switch fuel to replace SPRB coal. Consequently, the FTC has issued a temporary restraining order and the administrative trial is scheduled in early August 2020.