{"id":643540,"date":"2024-09-10T00:00:00","date_gmt":"2024-09-10T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2024\/09\/10\/oci-offloads-methanol-interests-to-methanex-for-usd-2-05-bn\/"},"modified":"2024-09-10T00:00:00","modified_gmt":"2024-09-10T00:00:00","slug":"oci-offloads-methanol-interests-to-methanex-for-usd-2-05-bn","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2024\/09\/10\/oci-offloads-methanol-interests-to-methanex-for-usd-2-05-bn\/","title":{"rendered":"OCI offloads methanol interests to Methanex for USD 2.05 bn"},"content":{"rendered":"<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"> <strong>OCI sells methanol business to Methanex for USD 2.05 bn: <\/strong>Nassef Sawiris-backed, Netherlands-headquartered chemicals company <a target=\"_blank\" href=\"https:\/\/oci-global.com\/\" style=\"\" rel=\"noopener\">OCI Global<\/a> has sold its entire methanol business \u2014 operating in the US and Europe \u2014 to Canadian methanol producer <a target=\"_blank\" href=\"https:\/\/www.methanex.com\/\" style=\"\" rel=\"noopener\">Methanex<\/a> in a USD 2.05 bn agreement, OCI said in a <a target=\"_blank\" href=\"https:\/\/ent.news\/2024\/9\/609.pdf\" style=\"\" rel=\"noopener\">press release (pdf)<\/a>. The purchase is set to be completed in 1H 2025, pending regulatory and shareholder approvals.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Methanex is no stranger to Egypt: <\/strong>Methanex Egypt <a target=\"_blank\" href=\"https:\/\/www.methanex.com\/about-us\/global-locations\/egypt\/\" style=\"\" rel=\"noopener\">was the first to operate<\/a> a methanol production facility in Egypt in 2011, with a current capacity of 1.3 mn tons per year. <a target=\"_blank\" href=\"https:\/\/www.facebook.com\/EgyptMOP\/posts\/pfbid0k2eyCJQHLLn8EB7fYVrgPZcGCdcHyiqwn2zrTUEnyWWPhjZkzHQadcnV1JZmTEnsl\" style=\"\" rel=\"noopener\">Earlier this week<\/a>, Oil Minister Karim Badawi met with Methanex officials to discuss opportunities to locally produce green methanol. Methanex Egypt is 50% owned by Methanex Corp, while Egyptian state institutions hold 33% and Saudi-based Apicorp owns the remaining 17%.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The nitty gritty: <\/strong>Methanex will make the purchase by paying USD 1.15 bn in cash, in addition to the issuance of 9.9 mn of its shares valued at USD 450 mn, giving OCI a c. 13% ownership of the company to make it the second largest shareholder. The share purchase aims to help the firms improve their joint operations, as well as consider potential further investments in the methanol industry cycle.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>That\u2019s not all:<\/strong> The sale also includes OCI\u2019s 50% stake in Natgasoline \u2014 a JV with Proman \u2014 which is subject to the settling of an ongoing lawsuit. The Natgasoline facility in Beaumont, Texas has an annual capacity of 1.7 million tons of methanol, of which Methanex\u2019s share will be 850,000 tons.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>All for the green: <\/strong>OCI has been restructuring and selling its assets to cut down on debt, returning capital to shareholders, and dedicating raised funds to greener chemicals such as low-carbon ammonia, according to <a target=\"_blank\" href=\"https:\/\/www.reuters.com\/markets\/deals\/methanex-acquire-ocis-methanol-business-205-bln-deal-2024-09-09\/\" style=\"\" rel=\"noopener\">Reuters<\/a>. OCI\u2019s divestitures as of late have generated around USD 11.6 bn of expected tax-free gross proceeds, CFO Hassan Badrawi said. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>REMEMBER- Sawiris has big restructuring plans for OCI:<\/strong> Egyptian b\u2019naire Nassef Sawiris \u2014 who owns a nearly 40% stake in the firm \u2014 said he was considering <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/43def9e6-cf20-4971-9508-8d1e11becc17\/brazilian-president-lula-is-meeting-el-sisi-later-today\" style=\"\" rel=\"noopener\">overhauling OCI GlobaI<\/a> in February, with one of the options being turning the empire into a cash-shell company pursuing acquisitions in new industries. The company sold its <a target=\"_blank\" href=\"https:\/\/enterprise.news\/climate\/en\/news\/story\/bda67733-685b-403a-8405-47b40e80a521\/%253cmark%253eoci%253c%2Fmark%253e-global-offloads-texas-blue-ammonia-project-for-usd-2.35-bn\" style=\"\" rel=\"noopener\">blue ammonia project in Texas<\/a> to Woodside for USD 2.35 bn in August and sold its <a target=\"_blank\" href=\"https:\/\/enterprise.news\/climate\/en\/news\/story\/c1b11e94-533d-4af4-984c-ed48fd056c83\" style=\"\" rel=\"noopener\">50% +1 stake in Fertiglobe<\/a> to Adnoc for AED 13.28 bn (USD 3.62 bn) last December, with the acquisition expected to close later this year. OCI also sold <a target=\"_blank\" href=\"https:\/\/enterprise.news\/climate\/en\/news\/story\/2aadc017-df89-4d9e-bfa3-9707b2cc2f82\/today:-taqa-is-exploring-acquiring-stakes-in-greece-cyprus-interconnection-project-%2B-acwa-inks-a-major-ppa-in-south-africa\" style=\"\" rel=\"noopener\">100% of its USD 3.6 bn stake<\/a> in the US crop nutrient unit Iowa Fertilizers to US\u2019 Koch Ag & Energy Solutions in the same month.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The transaction will see OCI get a 13% ownership in Methanex to make it the company\u2019s second largest shareholder<\/p>\n","protected":false},"author":1,"featured_media":643541,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7363],"tags":[72,254,7128,7124,151],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-643540","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ma-watch","tag-enterpriseam","tag-green-hydrogen","tag-ma-watch","tag-oci-global","tag-renewables","wpautop","entry"],"acf":{"mongo_id":"4543d21b-4d45-49bd-ac07-3d302969741c","order":"6","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2024\/8\/451.jpg","photo_position":"above","homepage_title":"","full_issue_title":"OCI offloads methanol interests to Methanex for USD 2.05 bn","related_issue":[643530],"teaser":"The transaction will see OCI get a 13% ownership in Methanex to make it the company\u2019s second largest shareholder","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2024\/9\/.9bfd3b02-bebe-43bf-9b46-6e4fdace5c7e.mp3"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - 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A shareholder agreement has been signed establishing Misr Methanol and Petrochemicals, which will manufacture methanol, ammonia, and other petrochemicals, the Oil Ministry announced today in a statement.Around USD 1.6 bn will\u2026","rel":"","context":"In &quot;SPEED ROUND: ENERGY&quot;","block_context":{"text":"SPEED ROUND: ENERGY","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round-energy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/8\/525.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":555263,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/11\/08\/methanex-egypt-settles-debt-for-damietta-plant\/","url_meta":{"origin":643540,"position":2},"title":"Methanex Egypt settles debt for Damietta plant","author":"enterpriseam admin","date":"8 November 2021","format":false,"excerpt":"Methanex Egypt fully settles USD 530 mn debt ahead of schedule: Canadian-Egyptian methanol producer Methanex has fully repaid a USD 530 mn facility before it was due, according to a company statement (pdf). The company used the facility to partially finance its USD 1 bn investment in its Damietta methanol\u2026","rel":"","context":"In &quot;DEBT WATCH&quot;","block_context":{"text":"DEBT WATCH","link":"https:\/\/enterpriseam.com\/egypt\/category\/debt-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":594754,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/09\/05\/my-morning-routine-manal-el-jesri-public-affairs-manager-for-methanex-egypt\/","url_meta":{"origin":643540,"position":3},"title":"My Morning Routine: Manal El-Jesri, Public Affairs Manager for Methanex Egypt","author":"enterpriseam admin","date":"5 September 2019","format":false,"excerpt":"Manal El-Jesri, Public Affairs Manager for Methanex Egypt: My Morning Routine looks each week at how a successful member of the community starts their day \u2014 and then throws in a couple of random business questions just for fun. Speaking to us this week is Manal El-Jesri, Public Affairs Manager\u2026","rel":"","context":"In &quot;My Morning Routine&quot;","block_context":{"text":"My Morning Routine","link":"https:\/\/enterpriseam.com\/egypt\/my-morning-routine\/\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2019\/9\/2952.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":643589,"url":"https:\/\/enterpriseam.com\/egypt\/2024\/09\/10\/govt-is-looking-into-tax-options-to-apply-on-egx-capital-gains\/","url_meta":{"origin":643540,"position":4},"title":"Gov\u2019t is looking into tax options to apply on EGX capital gains","author":"enterpriseam admin","date":"10 September 2024","format":false,"excerpt":"Good afternoon, all. We don\u2019t know about you, but we have already started counting down to the long weekend in observance of Prophet Mohammed\u2019s birthday. THE BIG STORY TODAY- #1- Amendments to the taxation of gains made from EGX transactions? The government is studying a number of tax options to\u2026","rel":"","context":"In &quot;WHAT WE\u2019RE TRACKING TONIGHT&quot;","block_context":{"text":"WHAT WE\u2019RE TRACKING TONIGHT","link":"https:\/\/enterpriseam.com\/egypt\/category\/what-were-tracking-tonight\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2024\/8\/12.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":596656,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/07\/03\/methanex-egypt-receives-award-for-contributions-to-msme-culture-in-damietta\/","url_meta":{"origin":643540,"position":5},"title":"Methanex Egypt receives award for contributions to MSME culture in Damietta","author":"enterpriseam admin","date":"3 July 2019","format":false,"excerpt":"Methanex Egypt has received the International Council for Small Business (ICSB) Humane Entrepreneurship Award for contributions to micro, small and medium-sized enterprises (MSME) culture in Damietta, the company said in a press release (pdf). Methanex Egypt operates a methanol production plant in Damietta, and in February it signed a two-year\u2026","rel":"","context":"In &quot;ON YOUR WAY OUT&quot;","block_context":{"text":"ON YOUR WAY OUT","link":"https:\/\/enterpriseam.com\/egypt\/category\/on-your-way-out\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2019\/7\/646.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/643540","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=643540"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/643540\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/643530"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/643541"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=643540"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=643540"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=643540"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=643540"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=643540"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}