[Editor's note: This story was updated at 8:30 a.m. CST Sept. 28.]
Chemicals group BASF and LetterOne signed a merger agreement to combine their respective oil and gas businesses Wintershall and DEA to create an independent European oil and gas company, the companies said Sept. 27.
The new company called Wintershall DEA will be headquartered in Kassel and Hamburg and will seek to list itself through an IPO, BASF said.
Under the deal, LetterOne will put all its shares in a vehicle of Russian billionaire Mikhail Fridman's DEA into Wintershall Holding GmbH against the issuance of new shares of the company to LetterOne.
BASF will initially hold 67% and LetterOne 33% of Wintershall DEA's ordinary shares.
The Joint Venture will aim for daily production of 750,000 to 800,000 barrels of oil equivalent between 2021 and 2023 and is expecting synergies of at least 200 million euros (US$232.80 million) per year are expected as of the third year following the closing of the transaction.
The new independent company will be led by the CEO of Wintershall, Mario Mehran and Maria Moraeus Hanssen, CEO of DEA, will be the deputy CEO and COO of the joint venture.
Closing is subject to regulatory approvals and is expected in the first half of 2019. (US$1 = 0.8591 euros)
Recommended Reading
NOV's AI, Edge Offerings Find Traction—Despite Crowded Field
2024-02-02 - NOV’s CEO Clay Williams is bullish on the company’s digital future, highlighting value-driven adoption of tech by customers.
Hess Corp. Boosts Bakken Output, Drilling Ahead of Chevron Merger
2024-01-31 - Hess Corp. increased its drilling activity and output from the Bakken play of North Dakota during the fourth quarter, the E&P reported in its latest earnings.
The OGInterview: Petrie Partners a Big Deal Among Investment Banks
2024-02-01 - In this OGInterview, Hart Energy's Chris Mathews sat down with Petrie Partners—perhaps not the biggest or flashiest investment bank around, but after over two decades, the firm has been around the block more than most.
Petrie Partners: A Small Wonder
2024-02-01 - Petrie Partners may not be the biggest or flashiest investment bank on the block, but after over two decades, its executives have been around the block more than most.
Nebula Energy Buys Majority Stake in AG&P LNG
2024-01-31 - AG&P will now operate as an independent subsidiary of Nebula Energy with key offices in UAE, Singapore, India, Vietnam and Indonesia.