Methanex buying OCI Global’s international methanol business in $2.05-billion deal

  • 📰 globeandmail
  • ⏱ Reading Time:
  • 55 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 25%
  • Publisher: 92%

Streetwise News

United States United States Latest News,United States United States Headlines

If the deal is approved by regulators, OCI will end up owning a 13-per-cent stake in Methanex

A Methanex Corporation plant is seen in Medicine Hat, July 16, 2018. Methanex will be paying US$1.15-billion in cash, issuing US$450-million in Methanex shares and assuming OCI’s US$450-million in debt and leases.of Vancouver is buying Amsterdam-based OCI Global’s international methanol business in a US$2.05-billion deal that expands the Canadian-based company’s U.S. presence.

“We are pleased with the opportunity to achieve a significant ownership position and are highly confident in Methanex’s ability to create enduring value for shareholders,” OCI executive chairman Nassef Sawiris said in a statement. The transaction features OCI’s stake in two methanol plants in Beaumont, Tex., including one that also produces ammonia.

“We believe Methanex is the natural owner of these assets, given how well the two portfolios fit. OCI started a strategic review 18 months ago, meaning the opportunity to consolidate the methanol market in low-risk jurisdictions is unlikely to have appeared again any time soon,” Mr. Isaacson said. On Monday, debt-rating agency Moody’s placed the Vancouver-based company’s ratings under review for downgrade. “Post transaction, we expect Methanex to allocate free cash flow toward debt repayment,” Moody’s said.The latest deal includes a methanol plant in the Netherlands, but the facility has been idle since 2021. OCI HyFuels, a producer of low-carbon methanol, also will be part of the transfer of various assets.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 5. in US

United States United States Latest News, United States United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Methanex to acquire OCI's methanol business in $2.05 billion dealThe deal includes $1.15 billion in cash, the issuance of 9.9 million shares of Methanex valued at $450 million, it said, adding that it is taking on about...
Source: YahooFinanceCA - 🏆 47. / 63 Read more »

Methanex buying OCI Global's international methanol business in US$2.05B dealVANCOUVER — Methanex Corp. has signed a deal to buy OCI Global's international methanol business in an agreement valued at US$2.05 billion, including assumed...
Source: YahooFinanceCA - 🏆 47. / 63 Read more »

Canada’s Methanex to acquire OCI’s methanol business in $2.05-billion dealOCI will become the second-largest shareholder of Methanex, with about 13% of the company
Source: globeandmail - 🏆 5. / 92 Read more »