“(Titanium dioxide) is a component in many products used by consumers,” said Bruce Hoffman, Director of the Competition Bureau. “This agreement will result in a competitive market that will ultimately benefit consumers in the form of lower prices and better quality products.” The pigment manufacturer estimates that the merger with Cristal will result in pre-tax synergies of $US 100 million by the end of the first year after closing, which will increase to $US 230 million for the fourth year. Jeffrey Quinn, president and CEO of Tronox, described the crystal merger as “a revolutionary and transformative moment” and said the world`s largest vertically integrated tiO2 producer and the second largest tiO2 producer with nine factories and combined revenue of more than $2.5 billion was created STAMFORD, Connecticut, 18. March 2019 /PRNewswire/ — Tronox Limited (NYSE: TROX) (“Tronox” or “the Company”), a global inorganic mining and chemical company, today confirmed that its proposed acquisition of the titanium dioxide (“TiO2”) business by The National Titanium Dioxide Company Limited (“Cristal”) will be submitted to the Federal Trade Commission for review. The FTC General Staff joined Tronox in removing the case from the decision and asked the Commission to review the transaction with the proposed remedy. In addition to the application, the filing with the Commission consists of the proposed markets necessary for the approval of the transaction, including an agreement on consent orders, a decision and an injunction to hold assets, as well as a final agreement on the sale of Cristal2`s North American business to INEOS Enterprises, a division of INEOS. (“INEOS”). All proposed contracts were performed by the parties. The transaction, which was modified to include the proposed divestment, received broad support from Cristal and North American customers in Cristal pigments and Tronox. In November 2018, Tronox and its largest shareholder, Exxaro, reached an agreement that addressed several legacy charges related to Tronox`s purchase of Exxaro`s mineral sands business in 2012.
Indeed, Exxaro has agreed to an “orderly exit” of its 28.7 million shares in Tronox. “This agreement will result in a competitive market that will ultimately benefit consumers in the form of lower prices and better quality products,” said Bruce Hoffman, Director of the Competition Bureau. In search of a way out in the FTC Administrative Court, Tronox unsuccessfully applied for a finding to compel the FTC to sue in Mississippi Federal Court or simply authorize the merger. Faced with a distant solution, both with the European Commission and with the FTC, Tronox extended its merger agreement until March 2019 and continued the management process in May 2018. Looking to the future: Tronox can present its arguments to the commission as a whole; However, the agreement with Cristal expires in March 2019. In its merger agreement with Cristal, Tronox again has an imminent termination date (March 2019). . .