Tronox responds to US District Court’s decision on proposed acquisition of Saudi-headquartered Cristal

Tronox, a global mining and inorganic chemicals company, commented on the decision by the US District Court for the District of Columbia granting the US Federal Trade Commission’s (FTC) request for a preliminary injunction regarding Tronox’s proposed acquisition of Cristal.

Cristal is a privately held global chemical and mining company, headquartered in Jeddah, Saudi Arabia. (Image courtesy: Cristal)
Cristal is a privately held global chemical and mining company, headquartered in Jeddah, Saudi Arabia. (Image courtesy: Cristal)

The company intends to promptly file a notice of appeal and request an expedited hearing of its appeal to reverse the court’s decision so Tronox may proceed with the merger. Simultaneous to its pursuit of an appeal, Tronox will be considering whether to proceed with the remedial divestiture of Cristal’s Ashtabula, Ohio, two-plant titanium dioxide (TiO2) production complex.

As announced on 16 July 2018, Tronox and Venator Materials entered into a binding Memorandum of Understanding providing for the negotiation of a definitive agreement to sell the Ashtabula complex to Venator should a divestiture of Ashtabula be required to consummate the Cristal acquisition.

The latest judicial decision was released under seal to provide counsel for Tronox, Cristal and the FTC an opportunity to review the text of the decision to ensure it contained no confidential information. The full decision is expected to be issued early next week.

Tronox is disappointed by the US District Court’s decision to further delay this output-enhancing combination designed to increase the supply of TiO2 for North American customers and position Tronox to succeed in a fiercely competitive global market,” said Jeffry N Quinn, president and CEO of Tronox.

“As we pursue an appeal, Tronox has valuable alternatives to consider, including a possible remedial transaction to divest the Ashtabula facility for $1.1bn to Venator, or waiting for a decision by the FTC’s Administrative Law Judge in the Part 3 Procedure.”

“During the Part 3 Procedure, I believe, we convincingly demonstrated that the FTC’s objections to the Cristal transaction are entirely misplaced and this highly synergistic transaction will significantly increase production of TiO2 to the benefit of customers in North America and around the world. We intend to be as transparent and open as possible and will be forthcoming with our chosen course of action at the appropriate time,” concluded Quinn.

For the latest refining and petrochemical industry related videos, subscribe to our YouTube page.

For all the latest refining and petrochemical news from the Middle East countries, follow us on Twitter and LinkedIn, like us on Facebook.

You may also like

World Plastics Council welcomes United Nations Environment Assembly resolution on marine litter
The World Plastics Council is a global forum for leading resin producing companies to accelerate cooperation and to deliver improved outcomes for the benefit of society
Editor’s Comment: Digital transformation as a key enabler
One of the stimulating outcomes of digitalisation for the chemical plants of the future is that it easily connects expertise across company boundaries during the project planning and execution phases
Infrastructure development trends and digital-based supply chain integration
Digitalisation is and will continue to be a key element for the growth and development of the refining and petrochemicals industry, and for other sectors also, comment Ekaterina Kalinenko and Konstantin Stezhko
From waste to value: The GCC chemical industry’s contribution to the circular economy
Unlike the take-make-use-dispose approach, the circular economy is designed to maximise the value and utility of materials over their lifecycle and keep them inside the value chain for as long as possible, comments Dr Abdulwahab Al-Sadoun

MOST POPULAR