OCI Global announced on June 12, that it has successfully obtained all necessary regulatory approvals for the sale of its Global Methanol Business to Methanex Corporation. The crucial clearance under the U.S. Hart-Scott-Rodino Antitrust Act marks the final regulatory hurdle, setting the stage for the transaction's expected closing on June 27, 2025, subject to customary closing conditions.
OCI Global announced on June 12, that it has successfully obtained all necessary regulatory approvals for the sale of its Global Methanol Business to Methanex Corporation. The crucial clearance under the U.S. Hart-Scott-Rodino Antitrust Act marks the final regulatory hurdle, setting the stage for the transaction's expected closing on June 27, 2025, subject to customary closing conditions.
This significant development signals the near completion of a strategic divestment for OCI Global, which will see the company transfer 100% of its equity interests in OCI Methanol to Methanex. This includes all of OCI's methanol assets across the United States and Europe.
The transaction, initially announced in September 2024 with an enterprise value of $2.05 billion, is structured to provide OCI with approximately $1.2 billion in cash (taking into account net indebtedness and subject to customary closing adjustments), alongside the issuance of 9.9 million common shares of Methanex. This share issuance is expected to make OCI Global the second-largest shareholder in Methanex, holding approximately 13% of the enlarged company.
OCI Methanol's portfolio is a key component of this acquisition, encompassing world-scale production facilities. This includes a methanol facility in Beaumont, Texas, with an annual capacity of 910,000 tonnes of methanol and 340,000 tonnes of ammonia. Additionally, Methanex will acquire a 50% interest in the Natgasoline plant, also located in Beaumont, Texas, a joint venture with Proman, which has an annual capacity of 1.7 million tonnes of methanol (Methanex's share will be 850,000 tonnes). The deal also includes a methanol facility in Delfzijl, Netherlands, with an annual capacity of one million tonnes, although it is currently idled due to unfavourable natural gas pricing. Significantly, the acquisition also includes OCI's HyFuels business, a pioneering entity in the production and distribution of low-carbon methanol, bio-MTBE, renewable natural gas, and ethanol, aimed at providing sustainable fuel alternatives.
For Methanex, this acquisition represents a substantial expansion of its global methanol production base, with the company anticipating an increase in its global methanol production by over 20%.
Following the successful closing of the transaction, OCI Global has committed to launching a tender offer for its $600 million 6.700 per cent Notes due 2033. This tender offer is mandated to be initiated within five business days of the transaction's completion. The terms of the tender offer are customary, offering a price of 110.75% of par, plus accrued and unpaid interest, which was previously supported by a significant group of bondholders.
