Rockwood Holdings, Inc.
) announced that they have achieved an important objective in
Huntsman's pending acquisition of Rockwood's Performance
Additives and Titanium Dioxide (TiO2) businesses. As per the
Hart-Scott-Rodino Antitrust Improvements Act of 1976, the waiting
period has expired and the antitrust review in the United States
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In Sep 2013, Huntsman entered into an agreement with Rockwood to
acquire its TiO2 Pigments, Color Pigments & Services, Timber
Treatment Chemicals, Rubber/Thermoplastics Compounding, and Water
Chemistry businesses. Huntsman agreed to pay $1.1 billion in cash
and assume $225 million in pension obligations, subject to other
customary adjustments for the acquisition, leading to an
enterprise value of $1.325 billion. The deal is subject to
necessary regulatory approvals and is expected to be completed by
the first half of 2014. Huntsman is continuing to work through
the regulatory process in the European Union.
The TiO2 Pigments business was Rockwood's biggest business unit
in 2012 with sales of roughly $900 million, representing about
25% of total sales of nearly $3,700 million. The divestiture is
in line with Rockwood's aim to become a more focused specialty
chemical company. It is now uniquely positioned to implement its
long-term business strategy that will enhance shareholders'
Huntsman is a major producer of TIO2, PU and other specialty
materials. The acquisition will make the company the world's
second-largest TIO2 producer. Huntsman currently holds a Zacks
Rank #3 (Hold).
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