Having agreed certain concessions, including a divestment, to appease EU regulators, Tronox has finally secured approval from the European Commission for its acquisition of Cristal.
The Commission finally concluded that Venator Material, a spinoff of Huntsman, is a suitable purchaser of Tronox’s 8120 paper laminate grade of titanium dioxide (TiO2), which it supplies to European customers from its plant in Botlek, the Netherlands. Tronox agreed to sell its business for chloride-based TiO2 used in paper laminate to overcome competition concerns.
Completion of the sale to Venator will occur once US regulators give their approval to the Cristal acquisition, something which Tronox said it is vigorously pursuing in the US District Court of the District of Columbia.
Tronox previously entered into a binding memorandum of understanding (MoU) with Venator to negotiate the sale of Cristal’s complex in Ashtabula, Ohio, USA, should such a divestment be required by the US Federal Trade Commission. The MoU gives Venator exclusivity until Sept. 29 to negotiate a definitive agreement.
“With the post-trial briefing in the administrative proceeding before the US Trade Commission and the preliminary injunction hearing in US District Court recently completed, we are focused on securing approval to complete the acquisition and transforming Tronox into the industry’s premier TiO2 company,” said Jeffry Quin, the company’s president and CEO.
