OCI Global Completes Sale of Methanol Business to Methanex
Deal News | Jun 27, 2025 | PR Newswire Cision OCI Global
OCI Global has announced the successful sale of 100% of its interests in its Methanol Business to Methanex Corporation in a transaction worth USD 1.6 billion, comprising USD 1.3 billion in cash and 9.9 million Methanex shares, valued at USD 346 million. The closing of this transaction has been described as a significant milestone in OCI's evolution, reflecting their strategic focus on capital efficiency and shareholder value. The sale includes indirect interests in the Natgasoline joint venture, following the resolution of legal disputes with Proman. Post-transaction, OCI plans further financial maneuvers, including a tender offer for USD 600 million in notes and up to USD 1 billion in cash distributions to shareholders by early 2026. After the deal's closure, OCI becomes a significant shareholder in Methanex, enhancing its strategic positioning in the methanol and hydrogen fuel markets. Advisors on the transaction included Morgan Stanley and several legal firms. The sale emphasizes OCI's strides in disciplined capital allocation, having generated USD 11.6 billion in gross proceeds over 18 months.
Sectors
- Chemical Manufacturing
- Investment Banking & Venture Capital
- Renewable Energy
Geography
- Netherlands – OCI Global is headquartered in the Netherlands and plays a significant role in the transaction.
- Canada – Methanex is based in Vancouver, Canada, and part of the acquired equity interests are in Methanex shares.
- United States – Key assets involved in the transaction, such as the methanol facilities, are located in the U.S.
Industry
- Chemical Manufacturing – The article discusses the sale of methanol business units, which is a key part of the chemical manufacturing industry.
- Investment Banking & Venture Capital – The transaction details include financial advisory roles played by firms like Morgan Stanley, highlighting the investment banking activities related to mergers and acquisitions.
- Renewable Energy – OCI's involvement with green methanol and renewable fuels ties the content to the renewable energy sector, emphasizing sustainability efforts.
Financials
- USD 1.6 billion – Total value of the transaction on a cash-free debt-free basis.
- USD 1.3 billion – Cash portion of the transaction proceeds.
- USD 346 million – Value of 9.9 million Methanex common shares issued as part of the transaction.
- USD 600 million – Notes due 2033 for which a tender offer will be launched.
- USD 1 billion – Potential return to shareholders through fiscal years 2025 and 2026.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| OCI Global | Seller | Company | OCI Global is a chemical manufacturing company that sold its methanol business to Methanex. |
| Methanex Corporation | Buyer | Company | Methanex is the world's largest producer and supplier of methanol. |
| Morgan Stanley & Co. International plc | Financial Advisor | Company | Provided financial advisory services to OCI Global in the transaction. |
| A&O Shearman, Cleary Gottlieb Steen & Hamilton LLP, Stikeman Elliott LLP | Legal Advisors | Government | Served as legal advisors to OCI Global during the transaction. |
| Nassef Sawiris | Executive Chairman | Person | Executive Chairman of OCI, made statements regarding the transaction. |
| Hassan Badrawi | CEO | Person | CEO of OCI Global, commented on the financial aspects and future strategic focus post-transaction. |