Westmoreland Coal (WLB) is a mining company that primarily operates thermal coal mines co-located with coal power plants, and sells its coal on long term contracts to those power plants. The company has recently announced a transformational acquisition of a similar business in Canada that will double the size of the company while significantly reducing its risk exposure and increasing its diversification. The company paid a low price for the business as it bought from a motivated seller in a depressed industry. The company has also renewed a contract that improves earnings visibility into the future for a non-core assets.
Westmoreland primarily operates mines located directly beside the power plants that burn its coal. This...
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