Tronox to acquire Cristal Tio2 business
US Tronox to acquire Cristal TiO2 ops and to sell alkali business
21 February 2017 13:56
HOUSTON (ICIS)--US titanium dioxide
(TiO2) major Tronox on Tuesday announced that it has agreed to acquire the TiO2 business of Saudi Arabia's Cristal, and it said that it plans to sell its alkali business.
Tronox is offering $1.673bn in cash and Class A shares representing 24% ownership in pro forma Tronox for the Cristal business.
The cash portion of the Cristal acquisition would be funded through proceeds from the sale of the alkali business, as well as the sale of other non-core assets, Tronox said.
The combination of the TiO2 businesses of Tronox and Cristal would create the world's largest and most highly integrated TiO2 pigment producer, with assets and operations on six continents, it added.
The combined company would operate 11 TiO2 pigment plants in eight countries with a total capacity of 1.3m tonnes/year, and it would have titanium feedstock operations in three countries with a total capacity of 1.5m tonnes/year.
The acquisition has already received unanimous approval from the Tronox and Cristal boards of directors. The transaction is subject to the approval by Tronox Class A and B shareholders, voting as a single class, as well as regulatory approvals and customary closing conditions.
Closing is expected before the first quarter 2018. Tronox expects completing the sale of its alkali business in the second half of 2017.
The combined company would be led by Tronox CEO Tom Casey.
Cristal is owned 79% by Tasnee, a listed Saudi joint-stock company, and 20% by Gulf Investment Corporation.