Egypt's Richest Nassef Sawiris' Oci To Sell Methanol Business For $2.05 Billion

OCI Global, a leading nitrogen and methanol producer led by Egypts richest man Nassef Sawiris, has agreed to sell its methanol business to Canadian methanol producer Methanex Corporation for $2.05 billion. This deal, following OCIs recent divestiture of its OCI Clean Ammonia project in Texas , marks a significant shift in the companys strategic focus.

The transaction will include OCIs U.S. and European methanol assets and a 50 percent stake in Natgasoline LLC, a major methanol facility in North America. The deal will be completed through $1.15 billion in cash and 9.9 million Methanex shares, granting OCI a 13 percent equity stake in Methanex.

Nassef Sawiris, OCIs Executive Chairman, expressed confidence in the transaction, stating, We are pleased with the opportunity to achieve a significant ownership position in Methanex and are highly confident in Methanexs ability to create enduring value for shareholders. Methanex was identified as the natural owner of OCI Methanol from the outset of our strategic process, which began in the spring of 2023.

OCI CEO Ahmed El Hoshy added, This is an outstanding strategic fit for Methanex. We look forward to collaborating with Methanexs management to fully integrate the business and ensure continuity and successful stewardship.

The $2.05 billion deal is structured as cash-free and debt-free, with Methanex issuing shares to OCI to complete the payment. This arrangement allows OCI to gain from potential future gains in the methanol sector. Methanex will leverage OCIs assets, particularly in low-carbon fuels, to capitalize on rising global demand.