Tronox Provides Update on TiZir Titanium and Iron Acquisition

Rhea-AI Summary

Tronox Holdings plc (NYSE:TROX) announced that the British Competition and Markets Authority intends to conduct a Phase 2 investigation into its acquisition of TiZir Titanium and Iron from Eramet S.A. The decision follows an earlier May 2020 announcement regarding the acquisition. Tronox may propose remedies to the CMA during the investigation process. The transaction does not require notification in the UK or meet the premerger reporting thresholds in the U.S. The company is cooperating with investigations by both CMA and the Federal Trade Commission.

Positive

• The acquisition could enhance Tronox's market position in titanium dioxide production.
• Potential operational synergies may arise from the integration of TiZir's assets.

Negative

• The ongoing regulatory review may delay the acquisition's completion.
• Potential conditions imposed by regulators could limit benefits expected from the acquisition.

STAMFORD, Conn., Jan. 4, 2021 /PRNewswire/ -- Tronox Holdings plc (NYSE:TROX) ("Tronox" or the "Company"), a leading integrated manufacturer of titanium dioxide pigment, today received a decision from the British Competition and Markets Authority ("CMA") indicating that it intends to open a Phase 2 investigation into Tronox's proposed acquisition of the TiZir Titanium and Iron ("TTI") business from Eramet S.A. (the "Seller") as announced on May 14, 2020.  As a standard part of the process, the Company may offer remedies to the CMA before it reaches a final decision on whether to begin a Phase 2 investigation.  The Company will keep the market informed of the progress of the transaction.

The transaction did not require notification in the United Kingdom or meet premerger reporting thresholds in the United States; however, the CMA and the Federal Trade Commission each launched investigations into the transaction, and the Company has been cooperative throughout these reviews.

About Tronox

Tronox Holdings plc is one of the world's leading producers of high-quality titanium products, including titanium dioxide pigment, specialty-grade titanium dioxide products and high-purity titanium chemicals; and zircon. We mine titanium-bearing mineral sands and operate upgrading facilities that produce high-grade titanium feedstock materials, pig iron and other minerals. With nearly 7,000 employees across six continents, our rich diversity, unmatched vertical integration model, and unparalleled operational and technical expertise across the value chain, position Tronox as the preeminent titanium dioxide producer in the world. For more information about how our products add brightness and durability to paints, plastics, paper and other everyday products, visit Tronox.com.

About Eramet

Eramet, a global mining and metallurgical group, is a key player in the extraction and valorisation of metals (manganese, nickel, mineral sands) and the elaboration and processing of alloys with a high added value (high-speed steels, high-performance steels, superalloys, aluminium and titanium alloys). The Group supports the energy transition by developing activities with high growth potential, including recycling and the extraction and refining of lithium. Eramet positions itself as the privileged partner of its customers in sectors that include carbon and stainless steel, aerospace, pigments, energy, and new battery generations. Building on its operating excellence, the quality of its investments and the expertise of its employees, the Group leverages an industrial, managerial and societal model that is virtuous and value-accretive. As a contributive corporate citizen, Eramet strives for a sustainable and responsible industry. Eramet employs around 13,000 people in more than 20 countries with sales of c.€4 billion in 2019. For further information, go to www.eramet.com

Forward Looking Statements

Statements in this release that are not historical are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements, which are subject to known and unknown risks, uncertainties and assumptions about us, may include projections of our future financial performance including the effects of the COVID-19 pandemic and anticipated synergies based on our growth and other strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance, actual synergies, or achievements to differ materially from the results, level of activity, performance, anticipated synergies or achievements expressed or implied by the forward-looking statements. Significant risks and uncertainties may relate to, but are not limited to, the risk that a regulatory approval that may be required for the Transaction is delayed, is not obtained or is obtained subject to conditions that are not anticipated; the risk that the Transaction does not close or that the Transaction Agreement is terminated; the risk that expected synergies, operating efficiencies and other benefits expected from the Transaction will not be realized or will not be realized within the expected time period; business and market disruptions related to the COVID-19 pandemic, market conditions and price volatility for titanium dioxide, zircon and other feedstock materials, as well as global and regional economic downturns, including as a result of the COVID-19 pandemic, that adversely affect the demand for our end-use products; disruptions in production at our mining and manufacturing facilities; and other financial, economic, competitive, environmental, political, legal and regulatory factors. These and other risk factors are discussed in the Company's filings with the Securities and Exchange Commission (SEC).

Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for our management to predict all risks and uncertainties, nor can management assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance, synergies or achievements. Neither we nor any other person assumes responsibility for the accuracy or completeness of any of these forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. Unless otherwise required by applicable laws, we undertake no obligation to update or revise any forward-looking statements, whether because of new information or future developments. 

Media Contact: Melissa Zona
+1.636.751.4057

Investor Contact: Jennifer Guenther
+1.646.960.6598

 

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SOURCE Tronox Holdings plc

FAQ

What is the current status of Tronox's acquisition of TiZir Titanium and Iron?

The British Competition and Markets Authority intends to open a Phase 2 investigation into the acquisition.

Did Tronox's acquisition of TiZir require notification in the UK?

No, the transaction did not require notification in the UK.

What implications does the Phase 2 investigation have for Tronox?

The investigation may delay the acquisition's completion and could impose conditions affecting expected benefits.

How is Tronox cooperating with regulatory investigations?

Tronox has been cooperative with both the British Competition and Markets Authority and the Federal Trade Commission during their reviews.