Methanex finalizes purchase of OCI Global’s methanol business

Methanex Corporation has recently finalized the acquisition of OCI Global’s international methanol business. This acquisition, which was initially announced in September 2024, marks a significant milestone for Methanex. The company has now obtained an interest in two large-scale methanol facilities located in Beaumont, Texas. These facilities are strategically positioned to have access to abundant North American natural gas feedstock, with one of them also involved in ammonia production. Additionally, Methanex has acquired a low-carbon methanol production and marketing business, along with an idle methanol facility in the Netherlands.

The transaction, valued at approximately $1.2 billion in cash, also involves the issuance of around 9.9 million common shares of Methanex and the assumption of roughly $450 million in debt and leases. Rich Sumner, the President and CEO of Methanex, expressed excitement about the completion of this acquisition. Sumner emphasized the importance of this strategic move and extended his gratitude to all the individuals who played a role in finalizing the deal. Looking ahead, Methanex is devoted to ensuring a seamless integration process, maintaining operational safety and stability, and reaping the strategic benefits that this acquisition brings.

In conjunction with the transaction, Methanex has taken steps to fulfill regulatory requirements. The company has filed a base shelf prospectus with the securities regulatory authority in the Province of British Columbia, as per a registration rights agreement established between Methanex and OCI. Furthermore, Methanex will file the prospectus with the U.S. Securities and Exchange Commission as part of a registration statement on Form F-10. This filing aligns with the Multijurisdictional Disclosure System that facilitates regulatory compliance between Canada and the United States.

The completion of this acquisition opens up new opportunities for Methanex to strengthen its position in the methanol market. The addition of the Beaumont methanol facilities, along with the low-carbon production business and the Dutch methanol facility, expands Methanex’s capabilities and market reach. With access to prime natural gas resources and diversified production assets, Methanex is well-positioned to drive growth and innovation in the methanol sector.

As Methanex navigates the post-acquisition phase, the company remains committed to operational excellence and sustainable practices. By leveraging its expanded portfolio and expertise, Methanex aims to capitalize on emerging market trends and consumer demands. The comprehensive approach to acquiring OCI Global’s methanol business reflects Methanex’s strategic vision for long-term success and leadership in the global methanol industry.