OCI Global ("OCI", the "Company") has entered into a binding equity purchase agreement for the sale of 100% of its equity interests in its Global Methanol Business ("OCI Methanol") to Methanex Corporation ("Methanex"), (the "Transaction").

Purchase price consideration of USD 2.05 billion on a cash-free and debt-free basis ("Enterprise Value" or "Transaction Consideration") following a competitive process.

AMSTERDAM, Sept. 8, 2024 /PRNewswire/ -- OCI Global OCI, ("OCI", the "Company"), a leading global producer and distributor of hydrogen products today announced that it has reached an agreement for the sale of 100% of its equity interests in its Global Methanol Business ("OCI Methanol") to Methanex Corporation ("Methanex") for a total consideration of USD 2.05 billion on a cash-free and debt-free basis (the "Transaction").

Transaction details

Under the proposed Transaction, Methanex will acquire 100% of the equity interests in OCI Methanol, comprising 100% of OCI's US and European methanol assets respectively. OCI Methanol is indirectly owned 85% by OCI and 15% by its partners Alpha Dhabi Holding PJSC and ADQ.

About OCI Methanol

OCI Methanol is a leading methanol producer in the US and through OCI HyFuels, a leading producer and distributor of green methanol today. OCI Methanol's total productive capacity comprises the following assets:

A methanol facility in Beaumont, Texas with an annual production capacity of 910,000 tonnes of methanol and 340,000 tonnes of ammonia. This plant was restarted in 2011 and since that time the plant has been upgraded with USD 800 million of capital for full site refurbishment and debottlenecking.

A methanol facility in Delfzijl, Netherlands with an annual capacity to produce one million tonnes of methanol. This facility is not currently in production due to unfavorable pricing for natural gas feedstock.

OCI Methanol's assets are in highly strategic developed market locations across the United States and Europe with access to stable and low-cost USGC natural gas enabling first quartile cost curve positions, and with extensive distribution and storage capabilities near major industrial demand centres and key bunkering hubs.

OCI HyFuels is a pioneering first-mover in providing the road, marine, power, and industrial sectors with renewable and low-carbon fuel alternatives to meet evolving regulatory requirements. The business includes the production and distribution of green methanol, bio-MTBE, renewable natural gas, and ethanol.

Methanol and ammonia are key enablers of the hydrogen economy and the most logical hydrogen fuels, key to decarbonizing hard to abate industries including marine. The Transaction will enable Methanex to drive and accelerate the transition to a hydrogen economy.

Ahmed El Hoshy, CEO of OCI commented: "This is an outstanding strategic fit for Methanex. I would like to thank my OCI colleagues for their efforts in building such a strong globally competitive methanol platform, ultimately leading to this transaction. We look forward to working closely with Methanex's management to fully integrate the business and to ensure continuity and successful stewardship through closing and beyond."

Bashir Lebada, CEO of OCI Methanol Group commented: "This transaction is testament to the efforts of an exceptionally talented group across OCI Methanol's platform, who have prioritized value creation for the past 14 years. We are proud of OCI's contributions to new applications, and in pioneering the use of methanol as a fuel globally, Methanex is well positioned to leverage OCI HyFuels to accelerate the transition to a low-carbon economy. Our highly profitable 350kt synloop-based ammonia production is also optimally placed to offer synergistic diversification, without meaningful capex. We are confident that the OCI team will pursue this work at pace with Methanex moving forward."

A conference call for investors and analysts will be hosted at 8am ET / 1pm BST / 2pm CET on 10 September.

Investors and analysts can access the call and ask live questions by pre-registering here. Upon registration, an individual access code and dial-in details will be automatically sent via email.

can access the call and ask live questions by pre-registering here. Upon registration, an individual access code and dial-in details will be automatically sent via email. Other participants may also join via the webcast. Please pre-register and join here.

Morgan Stanley & Co. International plc is serving as exclusive financial advisor to OCI on the transaction. A&O Shearman is acting as its legal advisor.

This press release contains information within the meaning of Article 7(1) of the EU Market Abuse Regulation.

About OCI Global

We are a global leader in nitrogen, methanol, and hydrogen, driving forward the decarbonization of the energy-intensive industries that shape, feed and fuel the world. OCI's production capacity spans four continents and comprises approximately 13.5 million metric tons per year of hydrogen-based products including nitrogen fertilizers, methanol, biofuels, diesel exhaust fluid and melamine. OCI is headquartered in the Netherlands and listed on Euronext in Amsterdam. Learn more about OCI at www.oci-global.com. You can also follow OCI on LinkedIn.

About Methanex

Contact Details

Sarah Rajani CFA, Vice President Investor Relations & Communications

Email: sarah.rajani@oci-global.com

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SOURCE OCI Global

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