A&O Shearman represents OCI Global on USD2.05 billion sale of global methanol business to Methanex Corporation

The transaction consideration will be paid through a combination of approximately USD1.15bn of cash (taking into account expected net indebtedness) subject to customary closing adjustments, and the issuance of 9.9 million of common shares of Methanex. As a result of the sale, OCI is expected to become an approximately 13% shareholder in Methanex, which is listed on the Toronto Stock Exchange in Canada and on the NASDAQ in the United States.

This is the second USD2+bn deal in a month in which A&O Shearman has advised the Amsterdam-listed, leading global producer and distributor of hydrogen products. Methanex is a Vancouver-based, publicly traded company and is one of the world’s largest suppliers of methanol.

The transaction, announced on Septenber. 8, 2024 in a press release, is expected to close in H1 2025, subject to customary closing conditions.

The A&O Shearman team that advised OCI Global was led by New York corporate partner Romain Dambre and associates Brittany Beyer and Yuwei Liu, supported by a cross-border and cross-practice team in the United States, the UK and the Netherlands that included London corporate and OCI relationship partner Andrew Schoorlemmer, partner Oliver Bacon, senior associate Tom Betts and associate Andrew Boyce, and Amsterdam corporate partner Tim Stevens and senior associate David Jacobs.

Romain Dambre said: “Given that the seller is headquartered and listed in Amsterdam, the buyer is based in Vancouver and listed both in Canada and the US, and OCI’s methanol business assets are predominantly in the US and Europe, this transaction exemplifies our truly global offering. It highlights the extensive international expertise and global network that A&O Shearman brings to our clients, made possible by our strategic combination.”