Won't be a takeover,it will be a merger between TGS and AVM. The synergies are obvious: Trafigura have 38% of AVM, and will soon have 28% of TGS. Trafigura have 3 board seats at AVM and 2 at TGS. Both are in close proximity to each other in the Katanga copperbelt and Trafigula have offtake agreements with each. AVM will be producing copper via a HMS unit early in 2011 while AVM will have a SX-EW unit operating at about the same time. AVM want more feed for their SX-EW unit from early next year, and have stated in their latest annual report that they are looking for a pipeline of projects to take them into the future. It's a match made in heaven.
TGS Price at posting:
24.0¢ Sentiment: LT Buy Disclosure: Held
