RIYADH, SAUDI ARABIA (February 21, 2017) Saudi Arabia's National Industrialization Co. (“Tasnee”), today 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 Limited in return for $1.67 billion and a 24% 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 Limited shareholders will own 76% and Cristal shareholders will own 24% 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 titanium dioxide (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 titanium dioxide 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 of 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 Tronox Chairman and CEO Tom Casey.
Tronox Limited operates three titanium dioxide (TiO2)
pigment plants in the USA, Netherlands and Australia; it operates mines
in South Africa and Australia; it has a research and development center
in the USA; and it 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 center in the USA. Cristal
also operates a titanium metal powder plant in the USA. The global
workforce is approximately 4,100. Cristal’s shareholders include the National Industrialization Company (“Tasnee”)(79%), a listed Saudi joint-stock company, the Gulf Investment Corporate (“CIG”)(20%), and a private investor (1%).