London +4420 814 42225
Moscow +7495 543 9194
Kiev +38044 599 2950

Our Clients

Order Informer

Home > News >

Unit of Saudi Tasnee sells titanium dioxide business in USD1.67bn sale

April 12/2019

MOSCOW (MRC) -- Cristal, the majority-owned subsidiary of Saudi-based Tadawul-listed National Industrialisation Company (Tasnee), has sold its North American titanium dioxide (TiO2) assets to US chemicals giant Tronox for USD1.67bn (SAR6.26bn), said Constructionweekonline.

According to a Saudi bourse missive, the transaction closed on 10, April 2019 following the green light from the US Federal Trade Commission (FTC). Under the deal, Cristal which is 79% Tasnee-owned will receive a cash consideration of $1.67bn (SAR6.26bn) and a 24% equity position in Tronox.

Tasnee said cash received will be substantially used to fully prepay the outstanding bank debt of Cristal, which is consolidated in Tasnees consolidated financial statements. The two directors of Tasnees Board, Talal Ali Al Shair in his personal capacity and Mr. Ibrahim Al Qadi as the representative of Gulf Investment Corporation own 1% and 20% of Cristal shares, respectively.

The remaining shares are owned by Tasnee, which added that any further material developments pertaining to the transaction will be announced in due course.

Speaking on the move, Mutlaq H. Al-Morished, chief executive officer of Tasnee, said: This transaction enables Cristal and Tronox to position the combined businesses for long-term success in the [TiO2] global industry that will benefit from a fully integrated global asset base and derive significant synergies.

This also allows Tasnee to focus on its petrochemical assets, downstream business and other strategic business development opportunities, while substantially deleveraging its consolidated balance sheet."

The deal has been two years in the making after it was originally announced in February 2017. However, according to Reuters, the FTC said in December 2017 that it would go to court to block the deal, arguing that two of the three top suppliers of chloride process titanium dioxide.

Acording to an FTC statement, the agreed merger is agreed on the prereqwusite that, among other requirements, Tronox sells titanium dioxide producing facilities in Ashtabula, Ohio.

Uses for the chemical include paint and plastics production, as well as for industrial coatings.
Author:Anna Larionova
Tags:dioksid titana, Cristal, Tasnee.
Category:General News
| More

Leave a comment

MRC help


 All News   News subscribe