OCI Global Unveils Buyback of Minority Stakes in OCI Methanol

On September 10, 2024, OCI Global, a major player in the global hydrogen products market, announced a deal to repurchase the stakes held by Alpha Dhabi Holding PJSC (ADH) and ADQ in its methanol business. Under the agreement, OCI Global will buy back ADH’s 11% and ADQ’s 4% shares in OCI’s Global Methanol Business, also known as OCI Methanol or OCI Clean Fuels Limited. This move follows OCI Global’s recent announcement of the sale of its methanol business to Methanex Corporation for $2.05 billion. The deal with Methanex includes $1.15 billion in cash and 9.9 million common shares in the Canadian methanol distributor.

OCI Global had originally partnered with ADH and ADQ in November 2021, placing 15% of OCI Methanol's equity with these entities. The investment from Alpha Dhabi was instrumental in advancing OCI Methanol's global leadership in methanol production and enhancing its position in green methanol through its HyFuels brand. Following the announcement of the sale to Methanex, Alpha Dhabi revealed it would divest its stake in OCI Methanol, as stated in an ADX filing on September 9.

The repurchase of these stakes marks a significant step for OCI Global as it completes its transition of OCI Methanol to Methanex, reflecting a strategic shift in its business focus. Nassef Sawiris, Executive Chairman of OCI Global, expressed appreciation for the partnership with ADH and ADQ, noting that their collaboration had greatly contributed to OCI Methanol’s success in the hydrogen economy. Sawiris emphasized the value of this strategic alliance in driving OCI Methanol’s growth and looked forward to potential future collaborations.

This transaction underscores OCI Global’s commitment to refining its business strategy and consolidating its position in the global market. The successful sale of OCI Methanol and the repurchase of the minority stakes represent key milestones in OCI Global's ongoing efforts to enhance its portfolio and support its strategic goals.

OCI Global is a prominent global leader in the production of nitrogen, methanol, and hydrogen, playing a pivotal role in advancing the decarbonization of energy-intensive industries that sustain global agriculture, energy, and transportation sectors. OCI produces approximately 13.5 million metric tons annually, offering a diverse range of hydrogen-based products such as nitrogen fertilizers, methanol, biofuels, diesel exhaust fluid, and melamine. These products are essential for industries that shape, feed, and fuel the world. The company's operations span across four continents, reflecting its broad global footprint and commitment to providing sustainable solutions for various sectors. Headquartered in the Netherlands, OCI Global is listed on the Euronext stock exchange in Amsterdam. As a key player in the global hydrogen economy, OCI continues to drive innovation and sustainability in critical industries, contributing to the reduction of carbon emissions while meeting the world's growing energy and agricultural demands.