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OCI Global, backed by Egyptian billionaire Nassef Sawiris, is selling its stake in its global methanol business to Canada’s Methanex in a $2.05 billion deal.
The transaction will be paid through a combination of $1.15 billion of cash and the issuance of 9.9 million of common shares of Methanex. The deal will also make the Dutch green-fuel company the second-largest shareholder in the Canadian methanol producer with a 13% stake.
OCI Methanol is indirectly owned 85% by OCI and 15% by its partners, Abu Dhabi’s Alpha Dhabi Holding and ADQ.
OCI said proceeds from the transaction, along with previously announced divestitures in IFCo, Fertiglobe and OCI Clean Ammonia, are expected to raise approximately $11.6 billion of gross proceeds for the company to significantly reduce its gross debt and to return capital to shareholders. OCI sold its clean ammonia project to Australia’s Woodside Energy for $2.35 billion last month. In 2023, the company also sold its stake in IFCO to Koch Ag & Energy Solutions for $3.6 billion.
The deal is expected to close in the first half of 2025, subject to regulatory approvals, customary closing conditions, and shareholder approval.
(Writing by Bindu Rai, editing by Brinda Darasha)
