21 February 2017
DETAILS
announced a definitive agreement
to acquire the TiO2 business of Cristal,
a privately held global chemical and mining company,
for
representing 24 percent ownership in pro forma Tronox.
Concurrently with this announcement, the company
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.
The combination of the TiO2 businesses
of
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 tons per annum
and will have titanium feedstock operations
in three countries with a total capacity
of 1.5 million metric tons per annum.
RIYADH, SAUDI ARABIA (February 21, 2017)
Saudi Arabia's National Industrialization Co. (“Tasnee”),
today announced that its subsidiary,
National Titanium Dioxide Company (“Cristal”),
has signed a definitive agreement
for the acquisition of its titanium dioxide (TiO2) business,
in return for $1.67 billion and
a 24% stake in the new entity.
The transaction will create
the largest TiO2 company in the world,
based on titanium chemical sales
and nameplate capacity.
Upon closing of the deal, which is subject
to governmental and regulatory clearances,
current Tronox Limited shareholders will own 76%
and Cristal shareholders will own 24%
of the combined entity.
Tronox Limited operates
* three titanium dioxide (TiO2) pigment plants
in the USA, Netherlands and Australia;
* it operates mines in South Africa and Australia;
* it has a research and development center in the USA;
* and it has an electrolyte and specialty chemicals division
in the USA.
Tronox has approximately 3,400 employees worldwide.
As a Tasnee company, Cristal operates
* eight TiO2 manufacturing plants
in the USA, Brazil, United Kingdom, France, Saudi Arabia,
China and Australia.
* Cristal also operates mines in Brazil and Australia
* and has a research and development center
in the USA.
* Cristal also operates
a titanium metal powder plant in the USA.
The global workforce is approximately 4,100.
Cristal’s shareholders include
* the National Industrialization Company (“Tasnee”)(79%),
a listed Saudi joint-stock company,
* the Gulf Investment Corporate (“CIG”)(20%),
* and a private investor (1%).
WWW.CHEMWINFO.COM BY KHUN PHICHAI
