Canadian methanol producer has Methanex has signed a $2.05 billion deal to acquire Dutch green fuel-maker OCI Global’s methanol business.

The transaction includes OCI’s interest in two world-scale methanol facilities in Beaumont, Texas, one of which also produces ammonia, as Methanex said in a press release.

Moreover, the transaction includes a low-carbon methanol production and marketing business and a currently idled methanol facility in the Netherlands.

“This is a unique opportunity to create value by acquiring two highly attractive North American methanol assets that will further strengthen our global production base, and we expect it will be immediately accretive to free cash flow per share,” said Rich Sumner, President and CEO of Methanex.

Methanex expects to achieve approximately $30 million of annual cost savings from lower logistics costs and lower selling, general and administrative expenses.

“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, Senior VP, Finance & Chief Financial Officer of Methanex.

The deal includes $1.15 billion in cash, the issuance of 9.9 million shares of Methanex valued at $450 million. Methanex is taking on about $450 million in debt and leases.

Meanwhile, OCI will become the second-largest shareholder of Methanex, with about 13% of the company. The deal is expected to close in the first half of 2025.

The divestment of OCI’s stake in the methanol business will increase the gross proceeds of its assets to $11.6 billion, according to Reuters.