"United Mining and Chemical Company" | News | National Industrialization : Tronox, Cristal to form the largest TiO2 company
National Industrialization : Tronox, Cristal to form the largest TiO2 company
17.03.2017National Industrialisation Co (Tasnee) recently announced that its subsidiary, National Titanium Dioxide Company (Cristal), has signed a definitive agreement for the acquisition of its titanium dioxide (TiO2) business, by Tronox in return for US$1.67 billion and a 24 percent stake in the new entity.
The transaction will create the largest TiO2 company in the world, based on titanium chemical sales and nameplate capacity. Upon closing of the deal, which is subject to governmental and regulatory clearances, current Tronox shareholders will own 76 percent and Cristal shareholders will own 24 percent of the combined entity.
Tasnee CEO Mutlaq Al-Morished commented, "This transaction enables Cristal and Tronox to position the combined businesses for long-term success in the TiO2 industry. This also allows Tasnee to focus on its petrochemical assets, downstream business and other strategic business development opportunities, while substantially deleveraging its balance sheet."
"This agreement will create the most diverse manufacturing platform of any TiO2 company. The resulting global network and synergies arising from consolidation of businesses will allow us to better meet customer needs worldwide and provide a more sustainable business. The success of the new company will come from its people, and I have no doubt that they will take the knowledge, skill, commitment and passion that they have shown in the past to help in building a new world-class company," said Dr Talal Al-Shair, vice chairman, Tasnee and chairman, Cristal.
"The combination of the TiO2 businesses of Tronox and Cristal will create a global leader with a wide range of products that our customers value and a cost structure that will allow us to deliver those products at the best price globally. This transaction will bring significant value to our shareholders, our customers, suppliers and our employees. Over the next several months, we will be working with the relevant agencies to receive all regulatory approvals that are required and working together on a global integration plan, ensuring that when the deal closes, we are prepared to operate efficiently as one unified company," said Tom Casey, chairman and CEO, Tronox.
Tronox operates three TiO2 pigment plants in the USA, Netherlands and Australia; the company operates mines in South Africa and Australia. Tronox has a research and development centre in the US; and the company has an electrolyte and specialty chemicals division in the USA. Tronox has approximately 3,400 employees worldwide.
As a Tasnee company, Cristal operates eight TiO2 manufacturing plants in the USA, Brazil, United Kingdom, France, Saudi Arabia, China and Australia. Cristal also operates mines in Brazil and Australia and has a research and development centre in the USA. Cristal also operates a titanium metal powder plant in the US. The global workforce is approximately 4,100. Cristal's shareholders include Tasnee (79%), the Gulf Investment Corporate (20%) and a private investor (1%).
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