Huntsman Corp. agreed to buy Rockwood Holdings Inc.’s titanium-dioxide assets for $1.1 billion to create the world’s second-largest producer of the white pigment and said it plans to sell shares in the business.

Huntsman also will take on $225 million in pension obligations, the Salt Lake City-based company said today in a statement. There will be an initial public offering of the combined titanium-dioxide unit within two years of the deal’s closing, which is expected in the first half of 2014, subject to regulatory approvals.

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