BASF, LetterOne agree merge oil gas businesses

BASF, LetterOne agree to merge oil and gas businesses

7:52 AM, 12th December 2017
BASF’s oil & gas activities are bundled in the Wintershall Group. © BASF
BASF’s oil & gas activities are bundled in the Wintershall Group. © BASF

LUDWIGSHAFEN, GERMANY: BASF SE and LetterOne Group have signed a letter of intent to merge their respective oil and gas businesses in a joint venture (JV), which would operate under the name Wintershall DEA.

The oil and gas business of BASF is bundled in the Wintershall Group consisting of Wintershall Holding GmbH and its subsidiaries, including the gas transportation business. The oil and gas business of LetterOne comprises DEA Deutsche Erdol AG and its subsidiaries.

Closing could be expected in the second half of 2018.

By combining these two German-based entities, their parent companies strive to create a basis for further profitable growth, optimize the portfolio footprint of the combined business and realize synergies.

Wintershall DEA would have significant growth potential and be one of the largest independent European exploration and production companies. In the medium term, BASF and LetterOne envisage to list Wintershall DEA through an initial public offering.

Based on the valuation of the exploration and production businesses, BASF shall initially hold 67 percent and LetterOne shall hold 33 percent in Wintershall DEA.

BASF would determine the chief executive officer (CEO) and LetterOne the deputy CEO of Wintershall DEA. The company would be headquartered in Kassel and Hamburg, Germany.

© Worldofchemicals News



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