Methanex To Buy OCI's International Methanol Business For $2.05B: Details
Portfolio Pulse from Lekha Gupta
Methanex Corporation (NASDAQ:MEOH) is set to acquire OCI Global's international methanol business for $2.05 billion, enhancing its global production by over 20%. The acquisition is expected to be immediately accretive to free cash flow per share and add $275 million to annual Adjusted EBITDA. The deal is anticipated to close in the first half of 2025, pending regulatory approvals.
September 09, 2024 | 11:09 am
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POSITIVE IMPACT
Methanex's acquisition of OCI's methanol business for $2.05 billion is expected to increase its global production by over 20% and add $275 million to annual Adjusted EBITDA. The deal is anticipated to be immediately accretive to free cash flow per share.
The acquisition significantly enhances Methanex's production capacity and financial performance, making it a strategic move that is likely to positively impact its stock price. The immediate accretion to free cash flow per share and substantial EBITDA increase are strong indicators of potential short-term gains.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Investors can gain exposure to Methanex's growth through the American Beacon GLG Natural Resources ETF (NYSE:MGNR), which includes Methanex in its portfolio.
MGNR includes Methanex in its portfolio, and the positive developments for Methanex could enhance the ETF's performance. However, the impact is less direct compared to holding Methanex shares.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50