Tasnee says US Commission approves Tronox purchase of Cristal’s TiO2 business

National Industrialization Co. (Tasnee) said the US Federal Trade Commission (FTC) approved Tronox Limited’s planned acquisition of the titanium dioxide (TiO2) business of the National Titanium Dioxide Company Ltd (Cristal).

The FTC green lighted the deal, under which Cristal will sell its North American TiO2 business to INEOS Enterprises, a division of INEOS Group, Tasnee said in a bourse filing on Thursday.

Under the deal, which was closed on April 10, Cristal will receive $1.673 billion in cash and hold a 24 percent stake in Tronox.

The funds will be used to fully pay Cristal’s outstanding bank debt.

When the deal is closed, Tasnee’s consolidated financial statements for Q2 2019 will imply the deconsolidation of Cristal assets and liabilities, which are part of this transaction with the equity investment in Tronox reported as an investment in an affiliate.

“The valuation of equity investment in Tronox and financial impact resulting from this transaction shall be determined based on the review of balance sheet at closing date by the independent auditors and reflected in Tasnee’s consolidated financial statements for the quarter ending June 30, 2019,” Tasnee added.

Talal Ali Al Shair and Ibrahim Al Qadhi, board members in Tasnee, own 1 percent and 20 percent of Cristal's issued shares, respectively.

The Tadawul-listed company owns a 79 percent stake in Cristal.

The deal does not include any preferential conditions for the aforementioned board members, Tasnee said, adding that further developments will be disclosed in due course.