Methanex acquires OCI’s methanol business for $2.05 billion

In Canada, Methanex announced the acquisition of OCI Global’s international methanol assets for $2.05 billion. The deal includes two large methanol facilities in Beaumont, Texas, with a combined annual production capacity of 1.76 million tonnes of methanol. One plant also produces 340,000 tonnes of ammonia per year, marking Methanex’s entry into ammonia production. The acquisition also includes OCI’s low-carbon methanol business, OCI HyFuels, and a currently idled plant in Delfzijl, Netherlands, which has the potential to produce one million tonnes of methanol annually when market conditions improve.

Methanex expects the acquisition to increase its global methanol production by over 20%. Rich Sumner, Methanex’s CEO, emphasized that the deal is accretive from day one, enhancing the company’s free cash flow and aligning with its long-term strategy of operational excellence and leadership in low-carbon solutions. Methanex anticipates $30 million in annual cost synergies, primarily through reduced logistics and administrative expenses. OCI will retain a 13% stake in Methanex post-transaction.

The acquisition will be financed with $1.15 billion in cash, $450 million in Methanex shares, and the assumption of $450 million in debt. The deal is expected to close in the first half of 2025.