NEW YORK: Genesis Energy LP said it will buy Tronox Ltd’s alkali business, the world’s largest producer of natural soda ash, for about $1.33 billion in cash to expand into the chemicals sector.
Genesis said it would raise about $750 million through a convertible preferred units issue to fund the deal. The company received binding commitments from investment vehicles affiliated with KKR Global Infrastructure Investors II LP and GSO Capital Partners LP for the purchase of the 8.75 per cent units.
KKR and GSO will buy about 22.2 million units at $33.71 each, Genesis said.
Tronox’s alkali business produces about 28 per cent of the world’s natural soda ash output. Soda ash or sodium bicarbonate is used in the making of glass, baked goods, detergents and a variety of other industrial chemicals and products.
Houston-based Genesis, a diversified midstream energy master limited partnership, also said its second-quarter net income attributable rose $10 million to $33.7 million. — Reuters
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