Salt Lake City, Utah-based Huntsman Corp announced that it would be purchasing the titanium dioxide pigment (TiO2) business of Rockwood Holdings. The deal would be worth USD 1.1 billion. Huntsman Corp is the first biggest producer of the white pigment in the world.

As part of the deal, Huntsman would be taking responsibility of Rockwood's pension obligations amounting to USD 225 million. The combined business would also be seeking a listing two years after completion of the deal.

In a statement, Hunstman Corp Chief Executive Officer Peter Huntsman said the purchase would help the company achieve value. "This acquisition provides a unique opportunity to unlock value within our pigments business and builds on the strong improvements we have made to its competitiveness," he said.

Last year, Huntsman posted TiO2 sales of USD 1.44 billion. Meanwhile, Rockwood Holdings registered sales of USD 889 million in the same period. Bloomberg reported that an oversupply of TiO2 in the worldwide market had caused prices to plunge since the middle of last year.