Table of Contents
Key Points
- OCI Global will sell its methanol business to Methanex for $2.05 billion, shifting focus towards hydrogen products.
- The deal includes OCI’s U.S. and European methanol assets and a 50% stake in Natgasoline LLC, paid with cash and Methanex shares.
- The transaction, expected to close in H1 2025, will help OCI reduce debt and return capital to shareholders, enhancing its sustainability focus.
OCI Global, a leading nitrogen and methanol producer led by Egypt’s richest man Nassef Sawiris, has agreed to sell its methanol business to Canadian methanol producer Methanex Corporation for $2.05 billion. This deal, following OCI’s recent divestiture of its OCI Clean Ammonia project in Texas, marks a significant shift in the company’s strategic focus.
The transaction will include OCI’s U.S. and European methanol assets and a 50-percent stake in Natgasoline LLC, a major methanol facility in North America. The deal will be completed through $1.15 billion in cash and 9.9 million Methanex shares, granting OCI a 13-percent equity stake in Methanex.
Strategic move for OCI and Methanex
Nassef Sawiris, OCI’s executive chairman, expressed confidence in the transaction, stating, “We are pleased with the opportunity to achieve a significant ownership position in Methanex and are highly confident in Methanex’s ability to create enduring value for shareholders. Methanex was identified as the natural owner of OCI Methanol from the outset of our strategic process, which began in the spring of 2023.”
OCI CEO Ahmed El Hoshy added, “This is an outstanding strategic fit for Methanex. We look forward to collaborating with Methanex’s management to fully integrate the business and ensure continuity and successful stewardship.”
Transaction details and future outlook
The $2.05-billion deal is structured as cash-free and debt-free, with Methanex issuing shares to OCI to complete the payment. This arrangement allows OCI to gain from potential future gains in the methanol sector. Methanex will leverage OCI’s assets, particularly in low-carbon fuels, to capitalize on rising global demand.
OCI’s Board of Directors has approved the transaction, which is expected to close in the first half of 2025, pending regulatory and shareholder approvals. The company plans to use proceeds from the sale to reduce debt and return capital to shareholders, following its successful divestitures totaling $11.6 billion.
OCI boosts focus on hydrogen products
Under Nassef Sawiris’s leadership, OCI is reshaping its focus on sustainability and operational efficiency. The company’s extensive portfolio includes hydrogen-based products and aims to continue its role as a leader in the industry.
This deal not only repositions OCI, but also strengthens Methanex’s position in the methanol market, positioning both companies to capture future growth opportunities in the evolving hydrogen economy.
