The deal is valued at approximately $1.2 billion in cash, 9.9 million Methanex shares, and $450 million in assumed debt.
Methanex Corporation, the world’s largest producer and supplier of methanol, announced today the successful completion of its previously unveiled acquisition of OCI Global’s ("OCI") international methanol business. The transaction, which was first announced in September 2024, marks a significant expansion for the Vancouver-based company, reinforcing its global leadership in the methanol market.
The acquisition encompasses a diverse portfolio of assets critical to the methanol supply chain. Methanex has secured an interest in two world-scale methanol facilities located in Beaumont, Texas. These facilities are strategically positioned to leverage robust North American natural gas feedstock, offering a competitive advantage in production costs. Notably, one of these Beaumont facilities also boasts ammonia production capabilities, adding further diversification to the newly acquired assets. Beyond the producing assets, the deal includes OCI’s low-carbon methanol production and marketing business, aligning with the industry's growing focus on sustainable solutions. Additionally, Methanex has acquired a currently idled methanol facility situated in the Netherlands.
The total consideration for this substantial transaction involved a multi-faceted approach. Methanex paid approximately $1.2 billion in cash, a figure subject to adjustments for working capital and cash acquired. Furthermore, OCI Global will now hold a 13% ownership interest in Methanex, having received approximately 9.9 million common shares of Methanex as part of the deal. Methanex also assumed approximately $450 million in debt and leases, bringing the total value of the transaction to roughly $1.65 billion.
Rich Sumner, President and CEO of Methanex, expressed his enthusiasm for the completion of the acquisition. "We are excited to complete this important strategic acquisition and to welcome a talented team to Methanex," Sumner stated. He extended his gratitude to the individuals whose diligent efforts ensured the successful closure of the deal. Looking ahead, Sumner emphasized the company's immediate priorities: "As we move forward, our focus is on ensuring a smooth integration, maintaining safe and stable operations, and delivering the strategic benefits of this acquisition.”
In preparation for the transaction’s finalization, Methanex has taken necessary regulatory steps. The company filed a base shelf prospectus with the securities regulatory authority in the Province of British Columbia, in accordance with a customary registration rights agreement established between Methanex and OCI. This Prospectus will also be filed with the U.S. Securities and Exchange Commission as part of a registration statement on Form F-10, under the Multijurisdictional Disclosure System between Canada and the United States.
