Apollo Bids for Tronox
US investment group Apollo Global Management has bid for titanium dioxide producer Tronox, according to a report by Reuters. The news comes just days after Apollo entered into exclusive negotiations to buy French PVC maker Kem One.
Apollo is said to have offered $27 per share for Tronox, valuing the Stamford, Connecticut-headquartered group at $4.3 billion. Sources familiar with the matter told Reuters that Tronox has hired advisers to consider the bid and has yet to decide on its next steps. Neither Apollo nor Tronox have commented.
While the Covid-19 pandemic has dampened demand for many of Tronox’s products, the company’s core markets are now recovering as economies, especially in Europe and North America, rebound. Second-quarter revenue has jumped 60% to $927 million versus the same period last year, while adjusted EBITDA was 67% higher at $237 million.
Spun out of Kerr-McGee in 2006, Tronox acquired Saudi Arabian TiO2 producer Cristal – also known as The National Titanium Dioxide Company – in April 2019. Prior to the deal, Cristal was owned 79% by Saudi joint-stock company Tasnee, which is now Tronox’s largest shareholder with a 24% stake.
Author: Elaine Burridge, Freelance Journalist
