Methanex signs definitive agreement to acquire OCI Global’s international methanol business for $2.05 billion

In Canada, Methanex Corporation announced that it has entered into a definitive agreement to acquire OCI Global’s international methanol business for $2.05 billion. The transaction includes OCI’s interest in two world-scale methanol facilities in Beaumont, Texas, one of which also produces ammonia. The transaction also includes a low-carbon methanol production and marketing business and a currently idled methanol facility in the Netherlands.

“This is a unique opportunity to create value by acquiring two highly attractive North American methanol assets that will further strengthen our global production base and we expect it will be immediately accretive to free cash flow per share,” said Rich Sumner, President and Chief Executive Officer of Methanex. “The Beaumont plants benefit from access to North America’s abundant and favourably-priced supply of natural gas feedstock, and are expected to increase our global methanol production by over 20%.”

As part of the transaction, Methanex said it expects to achieve approximately $30 million of annual cost synergies from lower logistics costs and lower selling, general and administrative expenses.

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