OCI sells its methanol business to Methanex for $1.2 billion in cash and 9.9 million shares

OCI Global has received U.S. regulatory approval for the sale of its global methanol business to Methanex Corporation, clearing a key hurdle toward completing the transaction. The Dutch-listed company said the review under the Hart-Scott-Rodino Antitrust Act had concluded, and all required regulatory approvals for closing had now been obtained.

The transaction, valued at approximately $1.2 billion in cash and 9.9 million Methanex shares, is expected to close on 27 June 2025, subject to customary closing conditions.

Methanex, the world’s largest producer and supplier of methanol, will acquire 100% of OCI’s methanol assets in the U.S. and Europe. The deal includes full ownership of OCI’s Beaumont, Texas facility—capable of producing 910,000 tonnes of methanol and 340,000 tonnes of ammonia annually—as well as a 50% stake in the adjacent Natgasoline plant, which has a total methanol capacity of 1.7 million tonnes.

The transaction also includes OCI’s methanol facility in Delfzijl, Netherlands, with an annual capacity of one million tonnes, though it is currently offline due to unfavorable feedstock pricing. Additionally, the transaction encompasses OCI HyFuels, a producer and distributor of low-carbon and renewable fuels, including green methanol and renewable natural gas.

Following the sale’s completion, OCI is required to launch a tender offer for its $600 million 6.7% notes due in 2033. The tender, to be made within five business days of closing, will offer 110.75% of par plus accrued interest.

OCI described the methanol portfolio as strategically located, with distribution and storage infrastructure in major U.S. Gulf Coast and European industrial hubs. The company highlighted the assets’ cost advantages, particularly in the U.S. market, due to access to stable, low-cost natural gas.

Methanol is increasingly viewed as a key transitional fuel in decarbonization efforts, particularly in the marine and industrial sectors, as part of the broader hydrogen economy. Methanex’s acquisition positions it to expand its presence in low-carbon fuel markets amid tightening emissions regulations.