Tasnee shareholders approve Tronox-Cristal deal

National Industrialization Co.’s (Tasnee) general assembly on Sunday approved the deal set to take place between National Titanium Dioxide Ltd. (Cristal), Tasnee’s 79 percent-owned subsidiary, and NYSE-listed Tronox Ltd.

Tronox will acquire the titanium dioxide (TiO2) business of Cristal for SAR 6.27 billion of cash and Class A ordinary shares representing 24 percent ownership in pro forma Tronox. 

The deal has been challenged by regulatory bodies including the US Federal Trade Commission (FTC) and the European Commission, on grounds that it could reduce competition in the titanium dioxide market and lead to higher prices.

During the meeting, shareholders also approved related party transactions to take place between Cristal and Tronox as two board members at Tasnee have direct and indirect interest in Cristal.

Talal Al Shair owns a 1 percent direct interest at Cristal, while Ibrahim Al Qadhi is a representative of Gulf Investment Corporation, which owns 20 percent of Cristal.

The general assembly also approved updated rules for the remunerations and nominations committee, amended policies and standards of board membership, and the remuneration policy for board members and executives.