Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of International Coal (NYSE: ICO) soared 30% on Monday after larger peer Arch Coal (NYSE: ACI) agreed to buy the metallurgical coal producer for $3.4 billion.  

So what: The all-cash deal, which will create the second-largest metallurgical coal company, values International Coal at $14.60 per share and represents a 32% premium to its closing price on Friday. With global steel production expected to grow 42% by 2015, Arch is simply the latest of several major coal producers -- Alpha Natural Resources (NYSE: ANR) and Walter Energy (NYSE: WLT) have already made purchases this year -- actively positioning themselves to meet the growing demand (met coal is used to make steel).

Now what: While International Coal seems all popped out, Arch Coal might be worth looking into. In fact, the company said it expects the transaction to be accretive to earnings in 2012 and result in about $70 million to $80 million in annual cost savings. With the shares down slightly year-to-date and sporting a forward P/E below 9, Arch might even be a reasonably priced opportunity as well.

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