Methanex (TSX:MX) has announced its agreement to acquire all of OCI Global’s international methanol business for US$2.05 billion. This acquisition includes OCI’s interest in two methanol facilities located in Beaumont, Texas, with one of them also producing ammonia. Additionally, the company will acquire a low-carbon methanol production and marketing business, as well as a methanol facility in the Netherlands that is currently inactive.
Shares of Methanex are currently trading down 5.97 per cent at C$54.16 as of 11:28 am ET. This strategic acquisition is expected to strengthen Methanex’s global production base and increase its methanol production by over 20 per cent.
The transaction is anticipated to result in approximately $30 million of annual cost synergies from logistics costs and lower selling and general administrative expenses. Upon closing, OCI Global will retain a 13 per cent ownership interest in the acquired assets. This acquisition aligns with Methanex’s strategy to expand its presence in low-risk jurisdictions with favorable access to feedstock natural gas.
The boards of directors of both Methanex and OCI Global have approved the transaction, which is expected to close in the first half of 2025. Methanex, headquartered in Vancouver, is a leading global supplier of methanol.
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