FTC Seeks To Block Merger Of Titanium Dioxide Producers

The Federal Trade Commission filed an administrative complaint charging that a proposed merger of two significant titanium dioxide suppliers violates antitrust laws. As part of the complaint, the FTC authorized staff to seek a temporary restraining order and preliminary injunction to block the merger.

The transaction at issue is Connecticut-based Tronox Limited's ("Tronox") proposed acquisition of its competitor, Saudi Arabia-based Cristal. Tronox and Cristal are two of the three largest producers of chloride process titanium dioxide in the North American market. According to the FTC, if allowed to proceed, this acquisition "would increase the risk of coordinated action among the remaining competitors and increase the risk of future anticompetitive output reductions by Tronox." Although titanium dioxide can be produced through two different processes (chloride process and sulfate process), the FTC alleged that North American customers cannot viably and