Tronox sells alkali chemicals business
Stamford, CT-based Tronox Ltd. has sold Alkali Chemicals business to Genesis Energy, LP, Houston, TX. The purchase price was about $1.325 billion inclusive of about $106 million of noncash net working capital.
Tronox said that Alkali Chemicals is the world’s largest producer of natural soda ash with its mining and processing facilities in Green River, WY.
“The sale of Alkali Chemicals is an important step in positioning Tronox as the global leader in the titanium dioxide (TiO2) industry. The proceeds will be used to fund the majority portion of the cash consideration for the acquisition of the TiO2 assets of Cristal, which is expected to close by the first quarter of 2018,” said Tronox CEO Peter Johnston.
Tronox is a vertically integrated mining and inorganic chemical business. The company mines and processes titanium ore, zircon and other minerals, and manufactures TiO2 pigments. The TiO2 business operates four chemical manufacturing plants in three countries and operates mines in South Africa and Australia.
Cristal (also known as The National Titanium Dioxide Co. Ltd.) operates eight plants in seven countries on five continents with about 4,100 people worldwide. Cristal is owned 79% by Tasnee (a listed Saudi joint-stock company) and 20% by Gulf Investment Corp. (GIC), a company equally owned by the six states of the Gulf Cooperation Council (GCC), headquartered in Kuwait. One percent of the company is owned by Dr. Talal Al-Shair, who also serves as vice chairman, Tasnee and chairman of Cristal.
Tasnee erects, manages, operates and owns petrochemical, chemical, plastic, engineering and metal projects; it provides industrial services and markets its products in five major sectors. GIC is an investment company incorporated in the State of Kuwait in 1983 as a Gulf Shareholding Company. It is equally owned by the governments of the six member states of the GCC, Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.