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Cristal sells titanium dioxide business to Tronox for $1.673 billion

Tronox also announces intent to begin process to sell its alkali business

Titanium dioxide facility of Tronox
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Titanium dioxide facility of Tronox
BS B2B Bureau Connecticut, USA
Last Updated : Feb 23 2017 | 1:57 PM IST
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Tronox Limited has signed a definitive agreement to acquire the titanium dioxide (TiO2) business of Cristal, a privately held global chemical and mining company, for $ 1.673 billion of cash and class A ordinary shares representing 24 percent ownership in pro forma Tronox. Concurrently with this announcement, Tronox announced its intent to begin a process to sell its alkali business. The cash portion of the purchase consideration is expected to be funded through proceeds from the sale of assets, including the sale of alkali and selected other non-core assets if appropriate, and cash on hand.

Cristal is owned 79 percent by Saudi Arabia-based Tasnee and 20 percent by Gulf Investment Corporation (GIC).

The combination of the TiO2 businesses of Tronox and Cristal creates the world's largest and most highly integrated TiO2 pigment producer with assets and operations on six continents. The combined company will operate 11 TiO2 pigment plants in eight countries with a total capacity of 1.3 million metric tonnes per annum and will have titanium feedstock operations in three countries with a total capacity of 1.5 million metric tonnes per annum. 

“We are pleased to announce the highly synergistic combination of the TiO2 businesses of Tronox and Cristal that will bring significant value to our shareholders, our customers and our employees,” said Tom Casey, Tronox Chairman and CEO.  

He added, “Our intent to sell alkali comes at an attractive time as the global market for natural soda ash is recovering and prices are improving. Alkali has continually sold every tonne of product it produces. The caliber of the alkali workforce and their commitment to safe, high-quality production are unmatched in the natural soda ash industry.”

Mutlaq Al-Morished, CEO, Tasnee, commented, “This transaction enables Cristal and Tronox to position the combined businesses for long-term success in the TiO2 industry. This also allows Tasnee to focus on its petrochemical assets, downstream business and other strategic business development opportunities, while substantially deleveraging its balance sheet.”

Tronox Limited is a global leader in the mining, production and marketing of inorganic minerals and chemicals. The company's TiO2 business operates four chemical manufacturing plants in three countries, and operates mines in South Africa and Australia. Tronox Alkali operates two trona ore mines and seven inorganic chemical manufacturing sites in the US.
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First Published: Feb 23 2017 | 1:54 PM IST

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