Global mining company, Tronox Ltd., today filed a motion in the US Court, seeking permission to submit a new proposed transaction to the Federal Trade Commission (FTC), according to a company statement.
The motion outlines a proposed $700 million divestiture of the Ashtabula TiO2 complex to INEOS Enterprises (INEOS), a unit of INEOS, one of the world's largest chemicals companies.
Under the new proposal, the Ashtabula complex, along with all of its associated assets – including research and development, sales, intellectual property and operations expertise – would be held separate during a short interim period while the proposed divestiture is pending.
"I believe this ideally positions the Ashtabula complex and INEOS to flourish as a stable and competitive new entrant into the TiO2 market," said Jeffry N. Quinn, president and chief executive officer of Tronox.
The proposed consent decree eliminates the competitive concerns alleged in the FTC's original complaint, while providing the necessary foundation for the divested assets to be commercially successful, he added.
If the motion is approved, then Tronox, Cristal and INEOS would be able to hold direct discussions with the FTC Commissioners on the proposal.
"Our priority continues to be to close the Cristal acquisition as soon as possible so we can immediately get to the business of unlocking value for our shareholders and better serving our global customer base. I am confident this proposed remedy benefits U. S. consumers, while resolving allegations in the FTC's complaint," Quinn noted.
The US Federal Trade Commission (FTC) had objected to Venator Materials’ request to buy Ashtabula’s complex, citing that the transaction will lessen competition or create a monopoly in the American market, Fawaz Al-Fawaz, chief financial officer of National Industrialization Co. (Tasnee) previously told Argaam.
Tronox and Cristal are seeking to sell Ashtabula complex to a strategic investor at a competitive price, Al-Fawaz said.
Comments
{{DisplayName}}
{{ElapsedTime}}