Methanex acquires OCI’s methanol business for $2.05B

Logo of Methanex Corporation

Methanex Corporation sealed a definitive agreement to acquire OCI Global’s international methanol business for $2.05 billion.

The transaction includes OCI’s interest in two world-scale methanol facilities in Beaumont, Texas, one of which also produces ammonia, Methanex said in a press release. Moreover, the transaction includes a low-carbon methanol production and marketing business and a currently idled methanol facility in the Netherlands.

OCI’s methanol business enhances Methanex’s asset portfolio with highly attractive assets in a low-risk jurisdiction that has an ample and economic supply of feedstock natural gas, the statement added.

The deal includes $1.15 billion in cash, the issuance of 9.9 million shares of Methanex valued at $450 million ($45 per share). Methanex is taking on about $450 million in debt and leases.

Methanex intends to fund the cash consideration of the transaction through a combination of cash on hand and new debt issuance. It has obtained a fully committed debt financing package from Royal Bank of Canada to support the transaction.

The deal is expected to be complete in the first half of 2025. The transaction has been approved by the boards of directors of both companies and is subject to receipt of certain regulatory approvals and other closing conditions including Toronto Stock Exchange approval for the issuance of Methanex shares to OCI.