30 May 2012 20:55 [Source: ICIS news]
HOUSTON (ICIS)--Tronox stockholders on Wednesday approved the company’s acquisition of South-Africa-based Exxaro’s mineral sands business, the US titanium dioxide (TiO2) pigment producer said.
Tronox said it plans to combine the Exxaro business with its existing businesses under a new Australian holding company, Tronox Limited.
The integrated company will employ about 3,500 workers in 16 countries, including the US, South Africa, Australia and the Netherlands, Tronox said.
Under the acquisition, Exxaro will receive about 38.5% of the voting securities of Tronox Limited, and the mineral sands business will be contributed on a debt-free basis, excluding related party loans, Tronox said.
Tronox shareholders approved the acquisition during a special meeting at the company’s new headquarters in Stamford, Connecticut.
A total of 82.36% of the outstanding shares of Tronox common stock were voted at the special meeting, of which 99.96% voted in favour of the transaction, Tronox said.
The deal still hinges on certain conditions, the TiO2 pigment producer said, including the South African government’s approval of the transfer of mining rights at the Namakwa mine. Transfer of mining rights at Exxaro’s KwaZulu Natal (KZN) site has already been approved and the parties expect to receive remaining required consents soon, Tronox said.
Tronox would also obtain Exxaro’s stake in the two companies’ 50:50 Tiwest joint venture in Western Australia.
The transaction would increase Tronox’s production capacity to around 465,000 tonnes/year of TiO2 pigment, and backward integrate it with production capacity of about 95,000 tonnes/year of natural rutile, 380,000 tonnes/year of slag and 220,000 tonnes/year of synthetic rutile.
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