EU Approves Huntsman's Acquisition Of Rockwood's TiO2 Businesses - Quick Facts

(RTTNews) - Huntsman Corp. (HUN) announced Wednesday that the European Commission has approved its acquisition of the Performance Additives and Titanium Dioxide or TiO2 businesses of Rockwood Holdings Inc. (ROC).

The Commission approval is subject to the divestiture of Huntsman's business associated with a product known as TR52 mainly sold into inks applications. This divestiture represents approximately 30 kilotons of TiO2 with annual EBITDA of approximately $5 million to $10 million and excludes any associated manufacturing assets.

Huntsman said it has reached a definitive agreement to sell its TR52 business to Henan Billions Chemicals Co., Ltd. Financial details of this agreement were not disclosed.

The transaction with Rockwood is expected to close in the coming weeks, pending the European Commission's approval of the sale of the TR52 business to Henan.

Separately, Rockwood Holdings confirmed that the European Commission has approved sale of its Titanium Dioxide Pigments and four other non-strategic businesses to Huntsman Corporation, for an enterprise value of $1.275 billion, including the assumption of $225 million in pension obligations.

The Rockwood businesses being sold include Titanium Dioxide Pigments, Color Pigments & Services, Timber Treatment Chemicals, Rubber/Thermoplastics Compounding, and Water Chemistry. This transaction is expected to close in late September or early October.