OCI Global, a major nitrogen and methanol producer led by Egypt’s richest man, has agreed to sell its methanol division to Canadian methanol maker Methanex Corporation for $2.05 billion. Following the recent divestment of the OCI Clean Ammonia project in Texas, this deal represents a significant shift in OCI’s strategic focus.
The acquisition will comprise OCI’s methanol assets in the US and Europe, as well as a 50% share in Natgasoline LLC, a significant methanol facility in North America. The transaction will be completed with $1.15 billion in cash and 9.9 million Methanex shares, giving OCI a 13% equity stake in Methanex.
Nassef Sawiris, OCI’s executive chairman, expressed confidence in the purchase, saying, “We are pleased with the opportunity to acquire a significant ownership position in Methanex and are extremely confident in Methanex’s ability to generate long-term value for shareholders.” Methanex was identified as the natural owner of OCI Methanol from the start of our strategic planning process, which began in the spring of 2023.”
OCI CEO Ahmed El Hoshy remarked, “This is an excellent strategic fit for Methanex.” We are excited to work with Methanex management to properly integrate the business and assure continuity and effective stewardship.”
The $2.05 billion transaction is designed as cash-free and debt-free, with Methanex issuing shares to OCI to complete payment. This agreement allows OCI to capitalize on potential future advantages in the methanol sector. Methanex will use OCI’s assets, particularly low-carbon fuels, to capitalise on expanding worldwide demand.
OCI’s Board of Directors has authorized the transaction, which is expected to completion in the first half of 2025, subject to regulatory and shareholder clearances. Following its successful $11.6 billion divestitures, the business intends to utilize the proceeds of the sale to decrease debt and return capital to shareholders.
Under Nassef Sawiris’ leadership, OCI is emphasizing on sustainability and operational efficiency. The company’s vast portfolio includes hydrogen-based products, and it hopes to maintain its position as an industry leader.
This transaction not only repositions OCI, but it also strengthens Methanex’s position in the methanol industry, allowing both firms to seize future development possibilities in the growing hydrogen economy.