OCI Global Achieves Successful Sale of Methanol Business to Methanex Corporation

OCI Global Finalizes Sale of Methanol Business to Methanex Corporation

Introduction
OCI Global has recently announced the successful completion of a significant transaction, in which it sold 100% of its Global Methanol Business, known as OCI Methanol, to Methanex Corporation. Valued at an estimated $1.6 billion, this transaction not only reflects OCI's strategic divestment but also sets the stage for future growth and financial stability.

Transaction Overview

The transaction, which sought regulatory and shareholder approvals, was completed and announced on June 27, 2025. Under the terms of the agreement, OCI will receive approximately $1.3 billion in cash and 9.9 million common shares of Methanex, making OCI a 12.9% shareholder and the second-largest shareholder of Methanex. This deal represents an important movement in OCI's financial strategy as it allows for the return of excess capital to shareholders, demonstrating their commitment to maximizing shareholder value.

Key Financial Highlights

The successful closing of this transaction signifies a key turning point for OCI. Nassef Sawiris, Executive Chairman of OCI, emphasized the importance of the sale, stating that it highlights the strength of OCI's portfolio and its ability to execute valuable transactions. Furthermore, OCI plans to launch a tender offer for its $600 million bonds due in 2033 shortly after the closing of this sale, aligning with their financial discipline.
In addition to repaying its bond and bank debts, OCI has committed to returning an extraordinary $1 billion to shareholders over the next two years. This will be distributed through various means, including cash dividends and potential share buybacks, further showcasing a strong commitment to shareholder returns.

Market Positioning

OCI Methanol stands out as a critical player in the methanol industry within the United States and Europe, operating production facilities strategically located near major industrial demand centers. The company’s assets include a methanol plant in Beaumont, Texas, with a production capacity of 910,000 tonnes annually, and participation in a joint venture with Proman to optimize its production capabilities.

Given the prominence of methanol and ammonia in the emerging hydrogen economy, this sale creates further opportunities for OCI and Methanex to collaborate in developing low-carbon fuel alternatives essential for decarbonizing industries like marine transport.

As a part of Methanex, OCI’s influence in the methanol market is expected to grow, enhancing its engagement in pivotal markets and fortifying its dedication to renewable energy initiatives.

Future Outlook

Looking forward, OCI's leadership sees robust opportunities to improve its operational capabilities and bolster its financial health. The significant cash inflow from this sale, accompanied by the expected returns to shareholders, positions OCI to fully leverage its business strategies effectively. CEO Hassan Badrawi reiterated that disciplined capital allocation and operational execution will remain central to their future endeavors.

Moreover, given the strategic nature of OCI's assets and the continued demand for methanol in several sectors, the partnership with Methanex positions both companies favorably in an evolving market. This partnership not only fortifies their market share but also aligns with global trends aimed at sustainability and carbon emission reduction.

Conclusion
The successful sale of OCI Methanol to Methanex Corporation marks an important chapter in OCI Global's strategic evolution. With plans for significant shareholder returns and enhanced operational efficiencies, OCI is well-equipped to navigate the future landscape of the energy sector while addressing the global call for sustainable practices. As the company continues to pursue disciplined financial management, its role in the methanol sector is poised for transformation and growth, setting a benchmark for others within the industry.