September 09, 2024 [Reuters]- Canadian methanol producer Methanex said on Sunday it will acquire Dutch green fuel-maker OCI Global’s methanol business in a $2.05 billion deal.

The deal includes $1.15 billion in cash, the issuance of 9.9 million shares of Methanex valued at $450 million, the methanol producer said, adding that it is taking on about $450 million in debt and leases.

OCI will become the second-largest shareholder of Methanex, with about 13% of the company, OCI said in a separate statement, adding that the deal is expected to close in the first half of 2025.

The divestment of OCI’s stake in the methanol business will increase the gross proceeds of its assets to $11.6 billion, it added.

The Dutch-listed company has been selling assets as it seeks to reduce debt, unlock more cash for shareholders and focus on greener chemicals such as lower-carbon ammonia.

OCI sold its clean ammonia project in Texas to Australia’s Woodside Energy for $2.35 billion earlier last month. Last year, it also agreed to sell its stake in Iowa Fertilizer Company (IFCO) to Koch Ag & Energy Solutions for $3.6 billion.

Free Trial: Access 13,300 Tank Terminal and Production Facilities

13,300 tank storage and production facilities as per the date of this article. Click on the button and register to get instant access to actionable tank storage industry data