BASF und LetterOne are creating the leading independent European oil and gas company with Wintershall DEA and are planning to list it in the medium term through an IPO.
BASF and LetterOne have today signed a definitive transaction agreement to merge their respective oil and gas business. Wintershall Holding GmbH, Kassel, and DEA (Deutsche Erdöl Aktiengesellschaft), Hamburg, will thus become one company: Wintershall DEA.
Wintershall DEA will be one of the largest independent European oil and gas companies. Closure of the transaction is expected in the first half of 2019. Until then, Wintershall and DEA will continue to operate as independent companies. As a further development step, BASF and LetterOne envisage to list Wintershall DEA throught an Initial Public Offering (IPO).
“We are confident that the merger of Wintershall and DEA will generate strategic growth and create synergies. With more self-operated projects, stable, long-term partnerships, and an optimized portfolio, Wintershall DEA will strengthen its international market position as a joint venture,” explains Wintershall's CEO Mario Mehren. “One thing is clear: Wintershall and DEA – two German companies with a long-standing tradition – are an excellent fit, as they complement each other in terms of strategy, business segments, and international locations. I am convinced that Wintershall DEA will establish itself as the traditional German company for oil and gas and as Europe's leading independent producer,” adds Mehren. Mario Mehren has been determined to be the CEO of the future company Wintershall DEA.