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Methanex Gets Green Light for OCI Global's Methanol Business Buyout

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Key Takeaways

  • MEOH has secured all required regulatory approvals for its acquisition of OCI Global's methanol business.
  • The U.S. Hart-Scott-Rodino Act review period expired, allowing the transaction to proceed as planned.
  • MEOH aims to close the deal on June 27 and quickly pursue integration to unlock strategic benefits.

Methanex Corporation (MEOH - Free Report) recently announced that the regulatory review period under the U.S. Hart-Scott-Rodino Antitrust Act has expired. As a result, all regulatory clearances required for Methanex to complete its previously announced acquisition of OCI Global's international methanol business have been secured. The transaction is expected to close on June 27, 2025, pending the satisfaction of customary closing conditions.

Under the deal terms, MEOH will purchase 100% of the equity interests in OCI Methanol, comprising 100% of OCI's U.S. and European methanol assets. Given its comprehensive integration strategy, Methanex anticipates moving fast following the deal closing to realize the strategic benefits of this purchase.

Shares of Methanex have lost 25.1% in the past year compared with a 25.2% decline of the industry.

Zacks Investment Research
Image Source: Zacks Investment Research

The company expects its 2025 production to be lower than its previously estimated 7.5 million tons (Methanex interest) because of an unplanned G3 outage. Second-quarter 2025 results will include an update for production guidance for 2025. Quarterly production may vary depending on gas availability, turnarounds, unscheduled outages and unanticipated events.

The company expects lower adjusted EBITDA in the second quarter than in the first quarter, owing to fewer produced sales caused principally by the G3 outage and a lower average realized price. Based on its April and May stated prices, the company expects the average realized price to be between $360 and $370 per ton for these two months.

Methanex Corporation Price and Consensus

Methanex Corporation Price and Consensus

Methanex Corporation price-consensus-chart | Methanex Corporation Quote

MEOH’s Rank & Key Picks

MEOH currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks in the basic materials space include Carpenter Technology Corporation (CRS - Free Report) , Centrus Energy Corp. (LEU - Free Report) and Avino Silver & Gold Mines Ltd. (ASM - Free Report) .

Carpenter Technology currently carries a Zacks Rank #1 (Strong Buy). CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 11.1%. The company's shares have soared 139.2% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Centrus Energy's current-year earnings is pegged at 71 cents. LEU, carrying a Zacks Rank #1, surpassed the Zacks Consensus Estimate in three of the trailing four quarters while missing once, with the average earnings surprise being 272.7%. The company's shares have rallied 315.1% in the past year.

Avino Silver, which currently carries a Zacks Rank #1, beat the consensus estimate in each of the trailing four quarters. In this time frame, it delivered an earnings surprise of roughly 104.1%, on average. ASM's shares have rallied 310.6% in the past year.

 

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