Troy Resources Makes Takeover Bid for Azimuth Resources
Wall Street Journal, March 28, 2013
http://blogs.wsj.com/dealjournalaustralia/2013/03/28/troy-resources-makes-takeover-bid-for-azimuth-resources/?mod=wsj_nview_latest
Summary
Troy Resources, one of the biggest global gold mining company, tries to augment its market share over its rival Azimuth resources in South America by making takeover bid. It is prospected that South America possess plentiful amount of gold reserves; therefore, Troy tries to buy Azimuth to get more share of gold mines.
Opinion
Troy Resources is trying to take over the entire gold mine industry. I do not really know whether oligopoly of government is naturally efficient or not. If the market is solely dominated by fewer people, gold price would not get dominated by producers; however, it would be less efficient to increase competition among producers. I hope market dominance may be beneficial for gold market.
I don't think market dominance would be beneficial for the gold market. I think the major companies will eventually kick out the small companies and go into an oligopoly.
ReplyDeleteI also think that market dominance would be beneficial fo the gold market. Nice summary and opinion Colin!
ReplyDeleteI am not sure whether market dominance would benefit to gold market or not. I think it would bring some changes to the demand of gold.
ReplyDelete