#USA #Amsterdam #Methanex Corporation #OCI Global #OCI Methanol

OCI Global Completes Sale of Its Methanol Operations to Methanex Corporation

On June 27, 2025, OCI Global announced the successful finalization of the sale of its entirely owned Global Methanol Business, derived from the company’s subsidiary OCI Methanol, to Methanex Corporation. This transaction is valued at an impressive USD 1.6 billion, representing a cash-free and debt-free basis. It encompasses approximately USD 1.3 billion in cash coupled with the issuance of 9.9 million shares of Methanex, which is valued at USD 346 million. This move significantly strengthens OCI's financial positioning and stipulates a strategic path forward for both entities.

Strategic Implications of the Transaction

OCI Global's Executive Chairman, Nassef Sawiris, expressed optimism regarding the transaction. He remarked, "The successful closure of the Methanol deal, alongside our commitment to repay bank debts and bonds, marks a pivotal moment in the transformative journey of OCI. This reflects our robust portfolio and our adept handling of value-accretive strategies while upholding solid financial discipline." He further noted that the company had returned over $7.4 billion to its shareholders since 2021, underpinning its focus on delivering enhanced shareholder value.

Amid the completion of this deal, OCI announced an intent to conduct a tender offer for its USD 600 million 6.700% notes due by 2033, projected to commence within five business days post-transaction closure. There is also an outlined plan to return capital of up to USD 1 billion to shareholders through various outlets during 2025 and early 2026.

Key Financial Highlights and Future Plans

The deal puts OCI in a favorable position as it transitions into a 12.9% shareholder in Methanex, marking its place as the second-largest shareholder in the company. The deal also includes OCI’s 50% interest in the Natgasoline joint venture as part of Methanex's acquisition, settling any prior disputes with its partner, Proman.

CEO Hassan Badrawi emphasized the importance of disciplined capital allocation and operational execution in realizing approximately USD 11.6 billion in proceeds over 18 months. This greatly enhances OCI’s financial strength and flexibility to pursue strategic objectives.

Insights into OCI Methanol and Methanex Corporation

OCI Methanol is recognized as a key player in methanol production in the United States, boasting an extensive portfolio that includes a methanol facility in Beaumont, Texas, with an annual production capacity of up to 910,000 tonnes. Additionally, OCI Methanol features a joint venture with Proman for a second facility in Beaumont, boasting an annual capacity of 1.7 million tonnes. Through OCI HyFuels, it also produces low-carbon methanol while exploring renewable energy alternatives.

Methanex Corporation, a publicly traded company headquartered in Vancouver, stands as the world's largest methanol producer and supplier. With a notable market presence, Methanex continues its strategic operations to meet the global demand for methanol, reinforcing OCI's decision to divest under optimal conditions.

In summary, this transaction marks a significant turn for OCI Global as it seeks further capital returns and financial expansion, leading to promising advantages for both OCI and Methanex alongside the methanol market. As they venture forth in their respective operations, stakeholders and investors alike will eagerly observe the unfolding processes and financial trajectories for both companies in the complex landscape of energy and resource management.