US-based Tronox Limited has signed a definitive agreement to acquire the titanium dioxide business of Cristal, which is 79 percent-owned by National Industrialization Co. (Tasnee), for $1.67 billion of cash and Class A ordinary shares representing 24 percent ownership in pro forma Tronox, according to a statement on PR Newswire.
The deal is expected be financed by proceeds from selling Tronox’s alkali business and selected other non-core assets if appropriate, and cash on hand.
The acquisition, which is subject to regulatory approvals and satisfaction of customary closing conditions, is likely to be finalized in Q1-2018.
The combined TiO2 businesses of Tronox and Cristal will operate 11 TiO2 pigment plants in eight countries with a total capacity of 1.3 million metric tons annually and will have titanium feedstock operations in three countries with an annual capacity of 1.5 million metric tons.
Tasnee CEO Mutlaq Al-Morished said: "This transaction enables Cristal and Tronox to position the combined businesses for long-term success in the 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."
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