French miner Eramet announced on Monday that Toronox Holdings had terminated an agreement to acquire TiZir Titanium and Iron (TTI), following a challenge of the UK Competition and Markets Authority (CMA).
CMA referred the proposed $300-million acquisition of the Norwegian ilmenite transformation plant to a Phase 2 investigation, citing competition concerns about the supply of chloride slag and titanium dioxide pigment.
During the initial investigation, the CMA found that Tronox intends to use all 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.
“The transaction would benefit customers, consumers, shareholders, and both companies, and I do regret that the CMA failed to recognize its value to competition" said Eramet's chairperson and CEO Christel Bories.
Tronox will have to pay Eramet a $18-million break fee.