Dutch hydrogen producer OCI Global announced on Monday its plans to sell an 85% stake in its methanol business to Canadian giant Methanex Corp. for $2.05 billion, marking a major step in its strategy to reduce debt and return cash to shareholders.
OCI’s $2.05B Methanol Biz Sale : The Transaction Details
OCI Global entered into a binding equity purchase agreement with Methanex, which will acquire OCI Methanol for $1.15 billion in cash and by issuing 9.9 million shares to OCI. The equity portion is valued at $450 million, giving OCI a 13% ownership stake in Methanex.
The sale involves OCI’s entire 85% share in its methanol subsidiary, with the remaining 15% held by Abu Dhabi investment firms ADQ and Alpha Dhabi Holding PJSC. The deal allows OCI to cut its debt significantly while participating in potential growth through its stake in Methanex.
OCI’s $2.05B Methanol Biz Sale : Legal and Financial Advisors
OCI Global received legal counsel from Allen Overy Shearman Sterling, with corporate partner Romain Dambre leading the team alongside associates Brittany Beyer and Yuwei Liu. On the other side, Methanex was advised by McCarthy Tétrault LLP, Baker McKenzie LLP, Loyens & Loeff NV, and Reed Smith LLP.
