OCI Global to Sell Methanol Business for $2.05 Billion
OCI will receive $1.15 billion in cash and 9.9 million common shares of Vancouver-based Methanex
The Netherlands-based OCI Global has agreed to sell its methanol business for $2.05 billion as part of its continuing efforts to pare debt.
OCI said Monday that it has agreed to sell the methanol business to Methanex Corp. MX -5.25%decrease; red down pointing triangle in a cash and share deal.
As per the terms, OCI will receive $1.15 billion in cash and 9.9 million common shares of Vancouver-based Methanex, one of the world’s largest suppliers of methanol.
Post the deal, OCI will hold about 13% stake in Methanex and become its second largest shareholder.
OCI has been divesting its assets and has so far cumulatively raised $11.6 billion in gross proceeds.
“Proceeds will be prioritized to reduce OCI holding company gross debt significantly and to return capital to shareholders,” it said.
The transaction is expected to be closed in the first half of 2025, subject to regulatory approvals.
OCI’s operations are spread across four continents and comprise approximately 13.5 million metric tons per year of hydrogen-based products, including nitrogen fertilizers, methanol, biofuels, diesel exhaust fluid, and melamine.
Morgan Stanley was OCI’s financial adviser.