Bidding for Lyondell TiO2 heats up

15 January 2007 00:00  [Source: ICB Americas]

PLAYERS IN the titanium dioxide (TiO2) market were awaiting news last week on the sale of Lyondell's TiO2 business, said by sources to be in its second round of bidding.

"There are a couple of private equity firms, along with strategic players Hunstman, Tronox and Kronos that got past the first round," said one source in the investment banking community, who placed the probable value of the deal in the $900m to $1bn range. "But it is unclear if the strategics can actually pull the deal off, from an antitrust perspective."

But the suitors were keeping their cards close to their chests. A Tronox source said, "Tronox is always interested and I am sure we are looking at it. Every company with money would be interested. As I understand it Lyondell was calling each company one at a time. I don't know for sure if we are in talks with them."

An offical at Kronos said, "I cannot confirm, but I certainly would not deny, that the company is looking at the proposal, but others are also interested. It is a fact that we are in a position to consider an acquisition. We have the financial means and capabilities and we have demonstrated we are able to run a TiO2 business well. The decision will be taken by Lyondell."

Huntsman had no comment.

Lyondell owns three production facilities in Europe, two in France and one in the UK, as well as plants in the US, Australia and Brazil.

Citigroup analysts estimate the sale of the business at $970m.

It remains to be seen whether antitrust authorities would give the go-ahead for an acquisition by a leading TiO2 player.

Previously, DuPont's attempts to expand its business were thwarted by regulators. But the company is still eyeing opportunities, as a DuPont source noted: "DuPont would be interested for the right price - not the whole lot, but specific units. The Commission blocked us before so it would impossible for DuPont to buy the whole package."

For breaking news on M&A, visit ICIS news at www.icis.com. Click "trial," then ICIS news

< previous article(VIDEO – ICIS news Americas Lunchtime Bulletin 24 February 2010)

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly