Tronox confirmed that it and the staff of the US Federal Trade Commission (FTC) have filed a joint motion with the FTC Commissioners requesting a delay of the remaining appeals deadlines.
The filing of the joint motion reflects progress in advancing settlement discussions regarding a remedy transaction intended to resolve the commission’s competitive concerns with Tronox’s pending acquisition of the titanium dioxide (TiO2) business of The National Titanium Dioxide Company Limited (Cristal).
Tronox has proposed to address the FTC’s concerns through a divestiture of all Cristal’s North American TiO2 business, including its two-plant Ashtabula TiO2 complex to INEOS Enterprises (INEOS), a division of INEOS, for a cash purchase price of $700mn.
“Tronox and the staff of the FTC have made significant progress in our settlement discussions and all parties continue to work constructively and diligently to address concerns raised by the FTC,” said Jeffry N Quinn, president and chief executive officer of Tronox.
“We continue to believe that INEOS’ demonstrated success in operating chemical businesses will inject new energy into the North American TiO2 industry to the benefit of consumers.We appreciate the diligence and attention given by all parties to advancing remedy discussions so we may finalise the Cristal acquisition and turn our focus toward unlocking value for our shareholders and better serving our global customers.”
Tronox is a vertically integrated mining and inorganic chemical business. The company mines and processes titanium ore, zircon and other minerals, and manufactures titanium dioxide pigments that add brightness and durability to paints, plastics, paper and other everyday products.
Cristal operates eight manufacturing plants in seven countries on five continents and employs approximately 4,100 people worldwide. Cristal is owned 79% by Tasnee (a listed Saudi joint-stock company) and 20% by Gulf Investment Corporation (GIC), a company equally owned by the six states of the Gulf Cooperation Council (GCC), headquartered in Kuwait. One percent of the company is owned by Dr Talal A Al-Shair, who also serves as vice chairman, Tasnee, and chairman of Cristal.
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