OCI Global, a leading global producer and distributor of hydrogen products, has announced an agreement to sell 100 percent of its equity interests in its Global Methanol Business (OCI Methanol) to Methanex Corporation for a total consideration of USD 2.05 billion on a cash-free and debt-free basis.
Under the terms of the proposed transaction, Methanex will acquire 100 percent of the equity interests in OCI Methanol, which includes OCI’s US and European methanol assets. OCI Methanol is indirectly owned 85 percent by OCI and 15 percent by its partners Alpha Dhabi Holding PJSC and ADQ. The transaction consideration will be paid through a combination of approximately USD 1.15 billion in cash, adjusted for net indebtedness and subject to customary closing adjustments, and the issuance of 9.9 million Methanex common shares. At a price of USD 45 per share, the Methanex share consideration is valued at USD 450 million, giving OCI approximately a 13 percent ownership stake in the enlarged Methanex entity. Financing is not a condition precedent for the transaction.
The sale of OCI Methanol’s indirect 50 percent stake in the Natgasoline LLC joint venture, which is included in the transaction, is subject to the resolution of a lawsuit filed in the Delaware Court of Chancery by Proman (CEL), which indirectly owns the remaining 50 percent stake in Natgasoline. Forty percent of the gross transaction consideration and 23 percent of the net transaction consideration—equivalent to 23 percent of the implied equity value—is attributable to Natgasoline. OCI maintains that Proman’s claims are without merit.
The transaction is expected to close in the first half of 2025, pending regulatory approvals, customary closing conditions, and approval from OCI shareholders. OCI’s board of directors has approved the transaction and recommended that shareholders vote in favor. Additionally, OCI’s largest shareholder, holding approximately 39 percent of the company, has signed an agreement to vote in support of the transaction.
This strategic divestment marks a significant step in OCI’s ongoing portfolio optimization, allowing the company to focus on its core businesses and further strengthen its position as a leading producer of hydrogen and other low-carbon products.
