LB Group(SZ:002601) Zhong Guo Jing Ying Bao·2025-10-17 08:53Core Viewpoint - Longbai Group announced the acquisition of titanium dioxide assets from Venator UK for $69.9 million, marking a strategic move to expand its presence in the European and American markets [2][3]. Group 1: Acquisition Details - Longbai Group's subsidiary, Baililian Europe, will acquire the titanium dioxide business assets from Venator UK for $69.9 million in cash, with additional tax liabilities of approximately $14.19 million [2]. - The assets have a book value of approximately $534 million and a net book value of $195 million, with the acquisition price being only 35.8% of the net book value [3]. - Venator UK is facing financial difficulties and has filed for the appointment of an administrator, which is a condition for the completion of the transaction [3]. Group 2: Strategic Implications - The acquisition aligns with Longbai Group's long-term development strategy, enhancing its global industrial layout and expanding its product matrix in chlorinated titanium dioxide [4]. - Post-acquisition, the company plans to integrate the acquired assets across production, supply chain, and sales channels to reduce operational costs and optimize sales systems [4]. - Longbai Group will also invest $55 million to establish Longbai UK Titanium Limited and Longbai Asia New Materials Limited in the UK and Malaysia, respectively, to support overseas business development [4]. Group 3: Management and Integration Challenges - The acquisition may face challenges in cultural and management integration due to differences in regional practices and company cultures [4]. - Longbai Group will need to address potential management, human resources, and internal control challenges as it scales up its operations following the acquisition [4].