On Wednesday 4 July, the European Commission approved the acquisition of Cristal by Tronox, subject to the commitments proposed by the latter.
The two companies, which are both active in the production of titanium dioxide pigment, own titanium feedstock mines, which provide the input material for pigment production, and sell zircon.
Following an in-depth examination, the Commission concluded that the initial planned transaction would have had a significant impact on competition on the European market for titanium dioxide pigment for paper laminate, particularly as there are currently only four players on this market. However, no competition problems were raised regarding the titanium dioxide pigments for use in other products, titanium feedstocks and zircon.
To lay the Commission's fears to rest, Tronox proposed to sell its global activities in titanium dioxide pigment for paper laminate to another player present in the European Economic Area (EEA), meaning that there would still be four players with activities on this market. The institution accepted this commitment.
Before a definitive green light can be given to the acquisition of Cristal by Tronox, the Commission must approve the purchaser to be suggested by the latter in the near future. In its examination, the institution will consider whether this purchaser will be able to put up effective competition against Tronox and the other two companies present in the EEA. (Original version in French by Lucas Tripoteau)