11:36 AM EDT, 09/09/2024 (MT Newswires) -- Methanex ( MEOH ) over the weekend said it agreed to acquire OCI Global's international methanol business for US$2.05 billion.

The deal includes OCI's interest in two methanol facilities in Beaumont, Texas, one of which produces ammonia, OCI HyFuels, a low-carbon methanol production and marketing business and an idled methanol facility in the Netherlands.

The purchase price includes US$1.15 billion in cash, 9.9-million Methanex ( MEOH ) shares valued at US$450 million, and the assumption of US$450 million in debt and leases.

The company will fund the deal using cash on hand and new debt issuance. OCI will own 13% of Methanex ( MEOH ) at the closing.

The deal is an opportunity to acquire producing methanol assets with access to robust North American natural-gas feedstock, Methanex ( MEOH ) said.

"We expect the acquisition to add incremental annual adjusted EBITDA of $275 million to our expected run-rate adjusted EBITDA of $850 million at a $350/MT realized methanol price," said Dean Richardson, Methanex,s chief financial officer, said in a release.

The transaction is scheduled to close in the first half of 2025.

Methanex ( MEOH ) shares were last seen down $3.44 to $54.16 on the Toronto Stock Exchange.

Price: 54.16, Change: -3.44, Percent Change: -5.97