Tronox Receives Antitrust Clearance for $2.4 Billion Acquisition of Cristal

Cleary Gottlieb successfully represented Tronox in the second phase merger proceedings before the EU Commission leading to the authorization of its acquisition of the rival titanium dioxide business of Cristal Limited.

This merger creates one of the largest supplier of chloride-based titanium dioxide in Europe and globally. Tronox and Cristal own titanium feedstock facilities, from which they source the raw material for their pigment production. Titanium dioxide is a white pigment used in numerous products, such as paints, paper, and plastics. It is used to add opacity and brightness and to ensure consistency of color.

In December 2017, the EU Commission opened a Phase II investigation based on a number of concerns relating in particular to a reduction in the number of suppliers of titanium dioxide pigment produced via the chloride-based process. On July 4, 2018, the transaction was approved by the EU Commission subject to conditions. The EU Commission considered that the set of commitments proposed by Tronox was adequate and sufficient to solve the competition concerns identified.