Methanex (MX) M&A Announcement summary

Deal rationale and strategic fit

• Acquisition adds world-scale, U.S.-based methanol assets with secure, low-cost feedstock, enhancing scale, stability, and operational excellence.

• Diversifies into ammonia and low-carbon methanol markets, leveraging complementary operations and OCI HyFuels' expertise.

• OCI becomes the second largest Methanex shareholder, participating in future upside and operational improvements.

• The deal marks a transformative step for OCI, crystallizing value for shareholders and supporting strategic objectives.

• Provides immediate cash flow and avoids construction risk, with acquisition cost per ton below brownfield replacement costs.

Financial terms and conditions

• Total purchase price is $2.05 billion: $1.15 billion in cash, $450 million in Methanex shares (9.9 million shares at $45/share), and $450 million in assumed debt and leases.

• OCI will hold approximately 13% of Methanex post-transaction.

• Net proceeds to OCI are expected to be about $1.2 billion after adjustments for debt, minority interests, and hedges.

• Methanex will fund the deal with cash on hand and new debt, supported by a fully committed $1.2 billion financing package.

• OCI is entitled to free cash flow from OCI Methanol until transaction close.

Synergies and expected cost savings

• $30 million in annual synergies expected by year two, mainly from logistics optimization and SG&A improvements.

• Additional value anticipated from operational integration, best-practice sharing, and Methanex's expertise.

• Low integration costs projected due to similar operating models.