Methanex acquires OCI's methanol division in a $2.05 billion deal

Methanex, a Canadian methanol manufacturer, announced on Sunday that it would acquire the methanol division of Dutch green fuel maker OCI Global for $2.05 billion.

The deal involves $1.15 billion cash and the issuance 9.9 million Methanex shares valued at $450 millions, according to the methanol manufacturer. It also includes $450 in debts and leases.

OCI, in a separate press release, said that it would become the second largest shareholder in Methanex with 13%. The deal was expected to be completed in the first half 2025.

It added that the sale of OCI's stakes in the methanol industry will bring the total gross proceeds from its assets up to $11.6 billion.

The Dutch listed company is selling assets to reduce its debt, free up more cash for the shareholders and concentrate on greener chemicals like lower-carbon ammonia.

OCI sold the project to Woodside Energy in Australia for $2.35bn earlier this month. In the same year, OCI agreed to sell its Iowa Fertilizer Company stake to Koch Ag & Energy Solutions at a price of $3.6 billion.

(source: Reuters)