Venator Materials announced the filing of a lawsuit against Tronox at the Delaware Superior Court.
The lawsuit resulting from Tronox’s refusal to honor its contract to pay Venator a $75 million “break fee” over the divestment of the Cristal North American titanium dioxide business. Venator seeks a judgment for $75 million, plus interest in pre-and post-judgment, and legal costs.
In March, Tronox sold Cristal North American TiO2 business to INEOS for $700 million.
Simon Turner, President and CEO of Venator, commented: “It is unfortunate that Tronox has failed to honor its contract with Venator and offers baseless excuses for its refusal to perform. Venator at all times acted in good faith during its negotiations with Tronox. For example, with Tronox’s consent, Venator met with the FTC to make a presentation on its proposed acquisition of Ashtabula. While Venator was preparing to further respond to the issues raised by the FTC, Tronox abruptly terminated discussions with Venator to pursue an alternative transaction. Having sold the business to a buyer other than Venator, Tronox must now pay the Break Fee.”