MOSCOW (MRC) -- Saudi Arabia's National Industrialization Co. (Tasnee) has announced that its subsidiary, National Titanium Dioxide Company (Cristal) has signed a definitive agreement for the acquisition of its titanium dioxide (TiO2) business, by Tronox Limited in return for USD1.67 billion and a 24% stake in the new entit, as per Cristal's press release.
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.
Tasnee CEO Mutlaq Al-Morished commented, "This transaction enables Cristal and Tronox to position the combined businesses for long-term success in the titanium dioxide (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."
"This agreement will create the most diverse manufacturing platform of any titanium dioxide company. The resulting global network and synergies arising from consolidation of businesses will allow us to better meet customer needs worldwide and provide a more sustainable business. The success of the new company will come from its people, and I have no doubt that they will take the knowledge, skill, commitment and passion that they have shown in the past to help in building a new world-class company," said Dr. Talal Al-Shair, Vice Chairman, Tasnee and Chairman of Cristal.
"The combination of the TiO2 businesses of Tronox and Cristal will create a global leader with a wide range of products that our customers value and a cost structure that will allow us to deliver those products at the best price globally. This transaction will bring significant value to our shareholders, our customers, suppliers, and our employees. Over the next several months we will be working with the relevant agencies to receive all regulatory approvals that are required and working together on a global integration plan, ensuring that when the deal closes, we are prepared to operate efficiently as one unified company," said Tronox Chairman and CEO Tom Casey.
As MRC informed earlier, Cristal has announced that effective March 01, 2017, or as contracts allow, prices on all TiONA and TiKON titanium dioxide (TiO2) products will increase in the global markets. These increases are in addition to previously announced price increases. Thus, in Eastern and Western Europe, including Turkey: Prices for all TiONA and TiKON TiO2 products will increase by EUR225 per metric ton and in Russia and CIS region by USD225 per metric ton; in North America - prices for all TiONA and TiKON TiO2 products will increase by USD0.07/lb; in Latin America - prices for all TiONA and TiKON TiO2 products will increase by USUSD225 per metric ton; in the Middle East and Africa - prices for all TiONA and TiKON TiO2 products will increase by USD225 per metric ton and EUR225 per metric ton in Euro priced markets; in Asia Pacific - prices for all TiONA and TiKON TiO2 products will increase by USD200 per metric ton.
Tronox Limited operates three 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.
Cristal is one of the largest producers of titanium dioxide and a leading producer of titanium chemicals. Cristal is the world’s leading supplier of ultrafine titanium dioxide products and titanium chemicals and is a fast-growing producer of mineral sands and titanium metal powder. Cristal operates eight manufacturing plants in seven countries on five continents and employs nearly 3,400 people worldwide. Cristal is owned 79% by Tasnee, a listed Saudi joint stock company and 20% by Gulf Investment Corporation, a company equally owned by the six states of the Gulf Cooperation Council and headquartered in Kuwait.
MRC