Upcoming AWS Coverage on Sociedad Quimica y Minera

LONDON, UK / ACCESSWIRE / February 22, 2017 / Active Wall St. blog coverage looks at the headline from Tronox Ltd. (NYSE: TROX) as the Company announced on February 21, 2017, a definitive agreement to acquire the TiO2 business of Cristal, a privately held global chemical and mining Company and a subsidiary of Saudi Arabia's Tasnee, for $1.673 billion of cash and Class A ordinary shares, equivalent to 24% ownership in pro-forma Tronox. Register with us now for your free membership and blog access at:

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One of Tronox's competitors within the Chemicals - Major Diversified space, Sociedad Quimica y Minera S.A. (NYSE: SQM), is expected to report earnings on March 01, 2017 after market close. The report will be for the fiscal Quarter ending December 2016. AWS will be initiating a research report on Sociedad Quimica y Minera following the release of its next earnings results.

Today, AWS is promoting its blog coverage on TROX; touching on SQM. Get all of our free blog coverage and more by clicking on the link below:

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Tronox also announced its intention to begin a process of selling its Alkali business, which produces natural soda ash, used in the manufacturing of glass, detergents, chemicals, pulp and paper, and water treatment. The cash portion of the purchase consideration is expected to be funded through proceeds from the sale of assets, including the sale of Alkali, and selected other non-core assets and cash on hand.

Benefits of the Acquisition

Post completion of the transaction, Tronox will become the world's largest and most highly integrated TiO2 pigment producer with assets and operations on six continents. The combined Company will operate 11 TiO2 pigment plants in eight countries with a total capacity of 1.3 million metric tons per annum and will have titanium feedstock operations in three countries with a total capacity of 1.5 million metric tons per annum. Tronox is expecting the deal to be 100% accretive to EPS in the first year and believes that between 2018 to 2021 its projected pro-forma EPS, EBITDA, and free cash flow growth rates will improve by approximately 70%, 30%, and 60%, respectively, versus Tronox standalone results.

"We are pleased to announce the highly synergistic combination of the TiO2 businesses of Tronox and Cristal that will bring significant value to our shareholders, our customers, and our employees," said Tom Casey, Tronox's Chairman and CEO, ?Because we don't expect to take on new debt, we project a 50 percent reduction in our net leverage ratio. We believe this combination presents an extraordinary opportunity to build a global leader that will offer the best results to customers, shareholders, creditors, and employees."

"This agreement will create the most diverse manufacturing platform of any titanium dioxide Company. The resulting global network and synergies arising from consolidation of businesses will allow us to better meet customer needs worldwide and provide a more sustainable business. The success of the new Company will come from its people, and I have no doubt that they will take the knowledge, skill, commitment and passion that they have shown in the past to help in building a new world-class Company," said Dr. Talal Al-Shair, Vice Chairman of Tasnee and Chairman of Cristal.

Agreement Details

Tronox announced that Tom Casey will remain Chairman and Chief Executive Officer of the Company. The size of the Company's board of directors will remain unchanged at nine members. Cristal's owners will receive two of the nine existing Board seats. Exxaro Mineral Resources will remain on the Board with its three seats. The Company's corporate offices will remain in Stamford, Connecticut, and it will continue as a public Company listed on the New York Stock Exchange and remain incorporated in the state of Western Australia, Australia.

The acquisition has received the unanimous approval of Tronox's and Cristal's boards of directors. The transaction is subject to the approval by Tronox Class A and B shareholders, voting as a single class, as well as regulatory approvals, and customary closing conditions. The Company is expecting to complete the transaction before Q1 2018.

Additionally, Tronox anticipates completing the sale of its Alkali business in H2 2017.

Stock Performance

On Tuesday, February 21, 2017, the stock closed the trading session at $19.47, soaring 35.02% from its previous closing price of $14.42. A total volume of 6.15 million shares have exchanged hands, which was higher than the 3-month average volume of 923.41 thousand shares. Tronox's stock price rallied 65.28% in the last month, 96.07% in the past three months, and 131.79% in the previous six months. Furthermore, since the start of the year, shares of the Company have skyrocketed 88.85%. The stock currently has a market cap of $2.24 billion and has a dividend yield of 0.92%.

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SOURCE: Active Wall Street