Titanium Dioxide Default Continues To Intensify: Tronox Counterclaims Venator!

- Jun 29, 2019-

On June 17, Tronox, a titanium dioxide giant, responded fiercely to another Titanium-white company, Venator, mainly because Tronox not only refuted Venator's $75 million liquidated damages requirement, but also countered Venator.


Recap


On April 10th, Tronox announced the completion of the acquisition of Cristal, which became the titanium dioxide giant with Como Titanium. However, due to the intervention of the US FTC (Federal Trade Commission), the acquisition process was cumbersome and complicated. From the signing of the agreement between the two parties in February 2017, the whole process lasted more than two years.


This complicated and tortuous process also laid the groundwork for the subsequent development of Venator...


On April 26, Venator suggested that during the acquisition of Cristal by Tronox, due to an antitrust investigation, it was finally forced to accept a compromise – the Cristal North American plant was sold. Venator first expressed its intention to purchase and negotiated with Tronox and signed a memorandum of understanding. But then Tronox sold the factory to another buyer, Ineos. For this matter, the two sides hold the same word. Tronox believes that Venator is not sincere enough. When it comes to the fact that it has not been quoted according to the agreement, it has caused him to transfer the factory to a third party at a low price. Venator believes that Tronox did not sell the factory to himself according to the agreement, and should pay compensation for the consequences of default. The two sides hold each other's words until...


On May 14, Venator officially filed a lawsuit against Tronox in the US High Court for Delaware, demanding payment of 75 million liquidated damages due to failure to comply with the terms of the previous agreement. This also means that both sides tore the face and officially started the war. When proceeding


On June 17, Venator responded immediately to Tronox's counterclaim. The company's president and CEO Simon Turner said, "Tronox has always been a disappointing trading partner, not only failed to fulfill its commitment to Venator, but now there is nothing wrong with it. We counterclaim! The evidence will show that there is no factual basis for the counterclaim, and we are expecting to go to court early."