Tronox Extends Acquisition Agreement With Cristal

Faced with regulatory approvals, on March 1, 2018, American chemicals firm, Tronox, announced that it has agreed to extend the deadline related to the acquisition of Cristal’s titanium dioxide business headquartered in Jeddah, Saudi Arabia.

According to the agreement, the dates were extended from May 21, 2018, to June 30, 2018. The companies also agreed that a three-month automatic extension will be applied until March 31, 2019, depending on outstanding regulatory approvals.

There isn’t a termination fee involved with extending the agreement. Tronox has the right to terminate the agreement if the regulatory approval won’t be obtained before January 1, 2019. However, Tronox would have to pay a termination fee of $60 million if it doesn’t honour the agreement on or before March 31, 2019, if regulatory approval isn’t obtained. The termination fee is applicable if Tronox breaks the agreement after December 31, 2018.

Saudi Arabia’s General Authority of Competition approved the acquisition along with Australia, China, New Zealand, Turkey, South Korea, and Colombia.

Commenting on the development, Mr. Jeffry Quinn, Tronox’s president and CEO, said, “The extension reflects the commitment of Tronox, Cristal, and its parent company, Tasnee, to this transaction. Although we do not anticipate needing the full extension to consummate the transaction, the amendment provides adequate time to optimise the outcome for the benefit of our collective stakeholders – our shareholders, customers and employees.”