National Industrialization Co. (Tasnee) on Thursday said it has amended the date to complete the deal between National Titanium Dioxide Ltd. (Cristal), Tasnee’s 79 percent owned subsidiary, and NYSE-listed Tronox Ltd.
The end date for the transaction has been extended to June 30 from May 21, with automatic three-month extensions until March 31, 2019, if necessary, Tasnee said in a bourse statement on Thursday.
Under the new agreement, Tronox would have to pay a termination fee of $60 million (SAR 225 million) if the deal is terminated after Dec. 31, 2018, should the company fail to obtain regulatory approvals on the acquisition.
Tronox plans to acquire the titanium dioxide (TiO2) business of Cristal for SAR 6.27 billion in cash and Class A ordinary shares representing 24 percent ownership in pro forma Tronox.
However, the proposed deal has faced regulatory challenges in the US and EU, amid concerns the merger could reduce competition and inflate prices.
In January, Tasnee CEO Mutlaq Al-Morished said he was confident that the merger would happen, even though one of the parties may have to offload assets to dilute the market impact of the merger.
He added that negotiations were underway with US and EU trade regulators, who fear the transaction may give Tronox excessive market power.
Cristal and Tronox remain committed to the transaction and efforts are underway to close the transaction as soon as possible, Tasnee said in the statement.
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