EU regulators to set conditions for Tronox-Cristal deal approval

European Union’s antitrust regulators are set to approve Tronox’s buy of Cristal’s titanium dioxide business on conditions, including that both companies would sell assets to address competition concerns, Reuters reported, citing unnamed sources familiar with the matter.

In February 2017, US-based Tronox Ltd. signed a definitive agreement to acquire the titanium dioxide (TiO2) business of National Titanium Dioxide Ltd. (Cristal) for $1.67 billion (SAR 6.27 billion) and Class A ordinary shares representing 24 percent ownership in pro forma Tronox, according to data compiled by Argaam.

Cristal is 79 percent-owned by National Industrialization Co. (Tasnee), which owns several plants around the world with capacity over 858,000 tons a year. Tronox output capacity stands at around 465,000 tons a year.

Tronox and Cristal in March have extended the end date for the transaction to June 30 from May 21, with automatic three-month extensions until March 31, 2019, if necessary.

The extension aimed to give more time to obtain the regulatory approvals, Tronox had said, adding that it didn’t expect more delays or deal termination, and that it is determined to finalize the deal as soon as possible.

The US Federal Trade Commission had issued an administrative complaint challenging the acquisition. Tronox filed a lawsuit to fight the FTC’s attempt to block the deal.