Methanex Corporation Completes Acquisition of OCI Global’s Methanol Business

Rhea-AI Summary

Methanex Corporation (NASDAQ:MEOH) has completed its acquisition of OCI Global's international methanol business for approximately $1.2 billion in cash, 9.9 million common shares, and the assumption of $450 million in debt and leases.

The acquisition includes two world-scale methanol facilities in Beaumont, Texas with access to North American natural gas feedstock (one also producing ammonia), a low-carbon methanol production and marketing business, and an idled methanol facility in the Netherlands. The company has filed a base shelf prospectus in British Columbia and with the SEC as part of the transaction.

Positive

• Strategic acquisition expands Methanex's position as world's largest methanol producer
• Acquisition includes two world-scale methanol facilities with access to robust North American natural gas feedstock
• Diversification into ammonia production through one of the Beaumont facilities
• Expansion into low-carbon methanol production and marketing business

Negative

• Significant debt assumption of $450 million in debt and leases
• Share dilution through issuance of 9.9 million common shares
• Large cash expenditure of $1.2 billion may impact balance sheet
• Integration risks with newly acquired facilities and operations

Insights

Financial Analyst

Methanex strengthens market leadership by acquiring OCI's methanol assets, expanding capacity and enhancing product portfolio with low-carbon offerings.

Methanex Corporation has completed a strategic acquisition of OCI Global's international methanol business in a transaction valued at approximately $1.2 billion in cash, 9.9 million Methanex common shares, and the assumption of roughly $450 million in debt and leases.

This acquisition significantly bolsters Methanex's position as the world's largest methanol producer by adding two world-scale facilities in Beaumont, Texas with access to cost-advantaged North American natural gas feedstock. The transaction brings three distinct strategic assets: the Texas facilities (including ammonia production capability at one site), a specialized low-carbon methanol business, and a currently idled facility in the Netherlands that provides European market optionality.

The transaction structure balances multiple financing sources—cash, equity, and assumed debt—which helps preserve financial flexibility while executing a substantial expansion. The equity component represents meaningful dilution to existing shareholders, while the debt assumption increases Methanex's leverage ratio, though the company likely anticipates operational benefits to offset these financial impacts.

From a strategic perspective, this acquisition strengthens Methanex's competitive positioning through increased scale and geographic diversification. The addition of ammonia production capabilities represents product diversification beyond pure methanol, potentially reducing market concentration risk. Meanwhile, the low-carbon methanol business positions Methanex to participate in the growing market for reduced-emission chemical products as industries worldwide pursue decarbonization initiatives.

The filing of a base shelf prospectus in connection with a registration rights agreement with OCI suggests a framework for potential future transactions involving the newly issued Methanex shares. Management has emphasized their focus on ensuring a smooth integration process, maintaining operational continuity, and ultimately delivering the strategic benefits that justified this significant transaction.

VANCOUVER, British Columbia, June 27, 2025 (GLOBE NEWSWIRE) -- Methanex Corporation (TSX:MX) (Nasdaq:MEOH) announced today that it has completed the previously announced acquisition of OCI Global’s (“OCI”) international methanol business.

As part of the transaction, first announced in September 2024, Methanex has acquired an interest in i) two world-scale methanol facilities in Beaumont, Texas, which have access to robust North American natural gas feedstock and one of which also produces ammonia, ii) a low-carbon methanol production and marketing business, and iii) a currently idled methanol facility in the Netherlands. The transaction consideration consists of approximately $1.2 billion of cash, excluding adjustments to working capital and cash acquired, the issuance of approximately 9.9 million common shares of Methanex and the assumption of approximately $450 million in debt and leases.

"We are excited to complete this important strategic acquisition and to welcome a talented team to Methanex," said Rich Sumner, President and CEO of Methanex. "I want to thank the individuals that worked diligently to successfully close this acquisition. As we move forward, our focus is on ensuring a smooth integration, maintaining safe and stable operations, and delivering the strategic benefits of this acquisition.”

In connection with the transaction, Methanex has filed a base shelf prospectus (the “Prospectus”) with the securities regulatory authority in the Province of British Columbia in accordance with a customary registration rights agreement entered into between Methanex and OCI. The Prospectus will also be filed with the U.S. Securities and Exchange Commission as part of a registration statement on Form F-10 in accordance with the Multijurisdictional Disclosure System established between Canada and the United States.

Methanex is a Vancouver-based, publicly traded company and is the world’s largest producer and supplier of methanol globally. Methanex shares are listed for trading on the Toronto Stock Exchange in Canada under the trading symbol “MX” and on the Nasdaq Stock Market in the United States under the trading symbol “MEOH”. Methanex can be visited online at www.methanex.com.

Inquiries
Sarah Herriott
Director, Investor Relations
Methanex Corporation
604-661-2600 or Toll Free: 1-800-661-8851
www.methanex.com

FAQ

How much did Methanex (MEOH) pay for OCI Global's methanol business?

Methanex paid approximately $1.2 billion in cash, issued 9.9 million common shares, and assumed $450 million in debt and leases for the acquisition.

What assets did Methanex acquire from OCI Global?

Methanex acquired two world-scale methanol facilities in Beaumont, Texas (one also producing ammonia), a low-carbon methanol production and marketing business, and an idled methanol facility in the Netherlands.

How will the OCI Global acquisition affect Methanex's market position?

The acquisition strengthens Methanex's position as the world's largest producer and supplier of methanol globally, while adding new capabilities in ammonia production and low-carbon methanol.

What regulatory filings were made for the Methanex-OCI Global deal?

Methanex filed a base shelf prospectus with British Columbia securities regulators and the SEC as part of a registration statement on Form F-10 under the Multijurisdictional Disclosure System.

When was the Methanex-OCI Global acquisition first announced?

The acquisition was first announced in September 2024 and completed on June 27, 2025.