EU’s approval of Tronox-Cristal deal supports merger: Tasnee CEO

The European Commission’s approval of Tronox Ltd.’s plan to acquire the National Titanium Dioxide Ltd. (Cristal) is positive for the completion of the merger in the US pending a green light from the US Federal Trade Commission, Tasnee CEO Mutlaq Al-Morished told Argaam in an exclusive on Sunday.

To implement the deal, the EU only required that Tronox sell its global business in titanium dioxide pigment for paper laminate, which operates with an annual production capacity of nearly 80,000 tons.

The production line divestment is unlikely to raise concerns for Tronox, as Cristal owns a similar paper laminate facility in the United Kingdom.

These strategic decisions will benefit the company in the long term, Al-Morished added.

Meanwhile, he expects the sale of the Netherlands-based plant to be closed within three months, adding that the EU conditions were expected.

Tronox is still in talks with potential buyers to sell the plant.

The TiO2 paper production plant would be sold on the condition that it is acquired by a renowned firm in the same industry. However, the sale is not allowed to private equity firms, Al-Morished added.

Last week, the chemical group Tronox received the EU antitrust regulators’ approval to acquire the TiO2 business of Cristal, Argaam reported.

In February 2017, Tronox signed a definitive agreement to acquire the TiO2 business of Cristal, which is 79 percent-owned by Tasnee, for $1.67 billion (SAR 6.27 billion) and Class A ordinary shares representing 24 percent ownership in pro forma Tronox.

Tronox and Cristal in March extended the end date for the transaction to June 30 from May 21, with automatic three-month extensions until March 31, 2019, if necessary.