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Metmar, Traxys deal gets Competition Commission nod

9th July 2015

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

  

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JOHANNESBURG (miningweekly.com) – The Competition Commission on Thursday gave the green light for the R294-million play by Luxembourg-headquartered Traxys for JSE-listed Metmar.

Physical commodity trader and metals and natural resources merchant Traxys aimed to buy 100% of the African diversified commodities trader for R1.10 a share.

The commission recommended to the Competition Tribunal that the large merger be approved without conditions.

Metmar’s shares on the JSE rose more than 4% to 94c by late Thursday afternoon.

Following the buy-out announcement in May, the parties said the acquisition would ensure improved diversification and access to international markets for Metmar, as well as access to committed and uncommitted facilities in a variety of major currencies.

It would also widen Metmar’s funding pool, reduce the cost of funding through economies of scale and facilitate access to private equity funding.

Edited by Creamer Media Reporter

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