Tronox says US trade commission blocks Cristal deal

The US Federal Trade Commission (FTC) had filed a complaint against Tronox Ltd.’s move to acquire National Titanium Dioxide Ltd.’s (Cristal) titanium dioxide business, the chemical producer said in a statement on Tuesday.

The FTC has maintained that the merger would reduce competition in the market, even as the European Commission approved the deal earlier this month on certain conditions.

Tronox said the deal would enable it “to better compete with global market leaders and lower-cost Chinese producers.”

Saudi Arabia’s National Industrialization Co. (Tasnee) holds a 79 percent stake in Cristal.

Last year, Tronox had expressed interest in buying Cristal’s titanium dioxide business for $1.67 billion in cash and new shares.

The FTC had first objected to the deal last year, saying Tronox and Cristal are two of the three top suppliers of chloride process titanium dioxide, used to make paint, plastic, paper and other products.