US approves OCI Global’s sale of methanol business to Methanex

The Netherlands-headquartered producer and distributor of hydrogen-based products, OCI Global, has received U.S. regulatory approval for the sale of its global methanol business, OCI Methanol, to Methanex Corporation, a Canadian company that supplies, distributes, and markets methanol worldwide.

As disclosed, the regulatory review period under the U.S. Hart-Scott-Rodino Antitrust Act has concluded, all approvals have been obtained, and the transaction is expected to close on June 27, 2025, subject to customary closing conditions.

Methanex is set to acquire 100% of the equity interests in OCI Methanol, comprising 100% of OCI’s U.S. and European methanol assets.

To note, OCI Methanol’s total productive capacity comprises the following:

• A facility in Beaumont, Texas, U.S., with an annual production capacity of 910,000 tonnes of methanol and 340,000 tonnes of ammonia.
• A 50% interest in a second methanol facility also in Beaumont, Texas, operated by Natgasoline, which is a joint venture with Proman. This plant has an annual capacity of 1.7 million tonnes of methanol.
• OCI’s HyFuels business, which produces and sells low-carbon methanol.
• A facility in Delfzijl, the Netherlands, with an annual capacity to produce 1 million tonnes of methanol.

According to OCI, the transaction consideration will be paid through a combination of approximately $1.2 billion of cash (taking into account net indebtedness), subject to customary closing adjustments, and the issuance of 9.9 million common shares of Methanex.

OCI Global and Methanex Corporation entered into a definitive agreement for the sale of OCI Methanol back in 2024.

At the time, Rich Sumner, President and CEO of Methanex, said: “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.”

“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 percent. We believe the transaction will provide significant long-term value to Methanex shareholders while aligning with our strategic objectives of industry leadership, operational excellence, and financial resiliency.”

In other news, in 2024, Abu Dhabi National Oil Company (ADNOC) completed the acquisition of OCI Global’s 50% + 1 shareholding in the seaborne exporter of ammonia Fertiglobe, increasing its share in the company to 86.2%, with 13.8% remaining in free float on the Abu Dhabi Securities Exchange (ADX).

Furthermore, Australia-headquartered energy company Woodside completed the acquisition of 100% of OCI Global’s 1.1 million metric tonnes clean ammonia project in Beaumont, Texas.

• ADNOC finalizes purchase of OCI’s stake in seaborne exporter of ammonia Fertiglobe
• Woodside completes acquisition of OCI’s clean ammonia project in Texas