Tronox gains European approval for Saudi deal

Chemicals and minerals maker Tronox secured this week the European Commission’s permission for its proposed $1.7 billion acquisition of the titanium dioxide business of Saudi Arabian chemical and mining firm Cristal, but the approval likely will not change its prospects in its ongoing battle with the U.S. Federal Trade Commission over the transaction.

To secure the EC’s approval, Tronox agreed to sell the Rotterdam, Netherlands-supplied paper-laminate product line. In addition to the EC’s backing, Tronox has gained authorization from regulators in Australia, China, New Zealand, Turkey, South Korea, Colombia and Saudi Arabia. Originally announced in February 2017, the deal focuses on a white pigment used in products including paint, industrial coatings, plastic and paper.

“We are pleased to receive the European Commission’s final approval and look forward to consummating this highly synergistic combination designed to increase asset utilization, lower our cost position, unlock incremental product volumes to serve growing global markets, and create significant long-term value for our customers and shareholders,” Jeffry Quinn, Tronox’s CEO and president, said in a statement.

But the deal faces concerted opposition from the U.S. Federal Trade Commission, the only regulator that still needs to approve the agreement. A lawsuit filed in federal court last month by the agency asserts the acquisition would violate antitrust laws by significantly reducing competition in the North American market for chlorideprocess titanium dioxide. Tronox denies the allegations.

Tronox shares closed Tuesday at $15.51, up 0.42 percent from their Monday finish.