Scotiabank ‘mixed’ on Methanex acqusition of OCI methanol business

Scotiabank has a “mixed” view of Methanex’s acquisition of OCI’s methanol business for $2.05B, which will boost the company’s global production by at least 20%. The firm believes the number one issue investors will have with the transaction is the potential impact it will have on buybacks next year. The “cash harvesting thesis is clearly now at risk,” which is what investors had been buying Methanex for post the G3 start-up, the analyst tells investors in a research note. Scotiabank keeps an Outperform rating on the shares with a $60 price target.