CHARLESTON, W.Va. - Alpha Natural Resources completed the takeover of rival Foundation Coal Holdings on Friday, winning shareholder approval of a deal that creates a national power out of two regional players even as the recession hammers energy demand.

Abingdon, Va.-based Alpha now has 6,200 employees and 61 mines in Wyoming, West Virginia, Kentucky, Pennsylvania and Virginia. And with 91 million tons of annual production, Alpha ranks as the nation's third-largest coal mine operator behind St. Louis-based giants Peabody Energy and Arch Coal.

Alpha announced the offer to buy Linthicum Heights, Md.-based Foundation in an all-stock deal worth $1.4 billion in May.

"We have created a stronger, more diversified company with the balance, size and scale to compete successfully in today's market environment," new Alpha Chief Executive Kevin Crutchfield said in a statement. "Our combined production, demonstrated marketing expertise and vastly enhanced reserve base, as well as our strong balance sheet and credit profile, provide a tremendous foundation to invest in future growth for the benefit of all our stakeholders."

Crutchfield moves up from president to replace CEO Mike Quillen, who becomes chairman of the combined company.

Alpha now is expected to generate about $4.2 billion in annual revenue, will have about $400 million in cash and more than $1 billion in total liquidity. It also will control 2.3 billion tons of reserves.

Canonsburg, Pa.-based rival Consol Energy isn't expecting the emergence of a bigger rival to change the competitive balance in Appalachia.

"I don't," Consol Chief Executive Brett Harvey told analysts when asked about the deal during a conference call Thursday. "I think they've just made a bigger company to compete with."

Alpha did not release a vote total, but the deal had to overcome opposition from its largest shareholder. Among other things, Duquesne Capital Management argued the deal would reduce Alpha's financial flexibility.

Foundation shareholders will receive 1.0840 shares of Alpha for each share they own at the close of trading Friday. Alpha shareholders own about 59 percent of the company, compared with 41 percent for Foundation stockholders.

A service of YellowBrix, Inc.