Grimsby area firm in £1.27 billion deal to become world's biggest

By Grimsby Telegraph | Posted: 24 Feb 2017

STALLINGBOROUGH firm, Cristal, which employs more than 400 people has been bought up in a multi-national deal.

An announcement from its Saudi owners National Industrialization Co. (Tasnee), said its subsidiary, National Titanium Dioxide Company (Cristal), has signed a deal to create the world's biggest titanium pigment producer with Tronox Limited.

The deal has been valued at £1.27 billion.

Cristal shareholders will have a 24 per cent stake in the new company.

The transaction will create the largest titanium dioxide company in the world, based on titanium chemical sales and nameplate capacity, the Saudi Arabian owners said.

The deal is subject to governmental and regulatory clearances and will leave Tronox Limited shareholders with 76 per cent control.

Tasnee CEO Mutlaq Al-Morished said: "This transaction enables Cristal and Tronox to position the combined businesses for long-term success in the titanium dioxide (TiO2) industry. This also allows Tasnee to focus on its petrochemical assets, downstream business and other strategic business development opportunities, while substantially deleveraging its balance sheet."

"This agreement will create the most diverse manufacturing platform of any titanium dioxide company. The resulting global network and synergies arising from consolidation of businesses will allow us to better meet customer needs worldwide and provide a more sustainable business. The success of the new company will come from its people, and I have no doubt that they will take the knowledge, skill, commitment and passion that they have shown in the past to help in building a new world-class company," said Dr. Talal Al-Shair, Vice Chairman, Tasnee and Chairman of Cristal.

"The combination of the TiO2 businesses of Tronox and Cristal will create a global leader with a wide range of products that our customers value and a cost structure that will allow us to deliver those products at the best price globally. This transaction will bring significant value to our shareholders, our customers, suppliers, and our employees. Over the next several months we will be working with the relevant agencies to receive all regulatory approvals that are required and working together on a global integration plan, ensuring that when the deal closes, we are prepared to operate efficiently as one unified company," said Tronox Chairman and CEO Tom Casey.

Tronox Limited operates three titanium dioxide (TiO2) pigment plants in the USA, Netherlands and Australia. It operates mines in South Africa and Australia. It has a research and development centre in the USA and it has an electrolyte and specialty chemicals division in the USA. Tronox has approximately 3,400 employees worldwide.

As a Tasnee company, Cristal operates eight TiO2 manufacturing plants in the USA, Brazil, United Kingdom, France, Saudi Arabia, China and Australia.

Cristal also operates mines in Brazil and Australia and has a research and development centre in the USA.

Cristal also operates a titanium metal powder plant in the USA. The global workforce is approximately 4,100.

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