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Tronox to repay $300 million of debt by end of quarter after regulator scraps planned acquisition
By Rebecca Melvin
New York, Jan. 19 – Tronox Ltd. said it plans to make a $300 million discretionary debt repayment by the end of the quarter from cash on the balance sheet, according to a company news release.
The new payment is on top of a $200 million repayment made in December and is being made from cash originally intended for its acquisition of Eramet SA’s TiZir Titanium and Iron business.
The planned TTI acquisition was cancelled due to rejection of the deal by the U.K. Competition and Markets Authority of a remedy proposal and opening of a Phase 2 investigation.
The debt repayment announcement, which is preliminary, was part of a Tronox business update including select preliminary unaudited financial results from the quarter ending Dec. 31.
Eramet will be paid $18 million of funds that were placed in escrow as a termination fee.
“We are disappointed with the rejection of our remedy proposal and respectfully disagree with the view taken by the CMA,” Jean-Francois Turgeon, co-chief executive officer and chief operating officer, stated in the release. “While TTI was an asset that would have furthered our vertical integration strategy, the decision to terminate the agreement reflects the fact that under the CMA's rules, we could not have obtained regulatory approval prior to the termination date under the agreement with Eramet.
“We are currently building significant momentum in the market and are already well-positioned to execute on our strategic plans with our existing portfolio today.”
Tronox is a Stamford, Conn., mining and inorganic chemical company focused on titanium, zircon and other minerals.
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