Merger abandoned by metallurgy firms during CMA investigation
Tronox has announced that it is to abandon its proposed purchase of TiZir Titanium and Iron (TTI).
The UK Competition and Markets Authority (CMA) will now not refer the deal for an in-depth Phase 2 investigation, subject to appropriate assurances from the parties that the transaction has been abandoned.
Following an assessment of the undertakings offered by Tronox, the CMA considers that the undertakings are not a clear-cut solution to the competition concerns identified as arising from the merger.
Accordingly, the CMA has decided not to exercise its discretion under section 73(2) of the Enterprise Act 2002 to accept undertakings in lieu of reference.
The Competition and Markets Authority (CMA) found in its initial Phase 1 investigation that Tronox intends to use all of TTI’s chloride slag in its own production of titanium dioxide and halt future sales of chloride slag to third parties. This would leave Rio Tinto, TTI’s main chloride slag competitor, with what is effectively a monopoly position.
