Tronox recently released a message confirming that it has signed an agreement with titanium dioxide giant Cristal. Tronox will fully acquire Cristal's titanium dioxide business with US$1.673 billion in cash and part of the equity. The transaction amount is equivalent to 24% of Tronox's equity. This means that the world's largest producer of titanium dioxide pigments is about to be born.
Tronox is a chemical and mining company. Tronox CEO Tom Casey said, "They are very pleased to sign this agreement with Cristal. Cristal's titanium dioxide technology can be integrated and complemented with Tronox's titanium dioxide technology." At the same time, Tom Casey also said that with regard to this agreement, they and Cristal We talked with each other for 18 months. A few days ago, Tronox is the world's sixth largest manufacturer of titanium dioxide, with an annual production capacity of 470,000 tons. In 2016, the sales of Tronox titanium dioxide reached US$1.3 billion.
The signing of this agreement is the so-called combination of strong forces. The "combination" of Tronox and Cristal means that this combination has become the largest and most highly integrated titanium dioxide producer on six continents in the world.
The combined company will operate a total of 11 titanium dioxide plants in 8 countries around the world, with a total production capacity of 1.3 million tons per year. At the same time, it will defeat Chemours and become the leader of titanium dioxide.
Jefferies stock analyst Laurence Alexander said that this acquisition will further consolidate the titanium dioxide market and support the upward price of titanium dioxide.