Wintershall and DEA to merge early in 2019Wintershall DEA will become one of the biggest independent oil and gas companies in Europe
BASF and LetterOne will create a new, leading, independent oil and gas company in Europe with Wintershall DEA, and are expecting to list the company on the stock exchange in the medium term through the issue of an IPO.
On Thursday, BASF and LetterOne signed a binding transaction agreement to merge their respective oil and gas businesses. This will merge Wintershall Holding GmbH, Kassel, and DEA (Deutsche Erdöl Aktiengesellschaft), Hamburg, into a single company: Wintershall DEA.
Wintershall DEA will become one of the biggest independent oil and gas companies in Europe. The merger is expected to go through in the first six months of 2019. Until then, Wintershall and DEA will continue their operations as two separate, independent companies. BASF and LetterOne are expecting the next step to be listing Wintershall DEA on the stock exchange by issuing an IPO.
“We are sure that the merger between Wintershall and DEA will promote strategic growth and create synergies. Several owner-operated projects, stable, long-term partnerships and a strengthened portfolio will give Wintershall DEA, as a jointly controlled business, a stronger position on the international market”, explained Mario Mehren, CEO of Wintershall.
“One thing is sure: Wintershall and DEA - two German companies with long traditions - are made for each other. They complement each other in terms of strategies, group segments and international presence. I am sure that Wintershall DEA will become a leading, traditional, German oil and gas company, and the biggest independent oil producer in Europe”, said Mehren, who is lined up for the position of CEO of the new company Wintershall DEA.
“For Wintershall DEA, Norway will become an even more important growth region and - after the company’s operations in Russia - by far the biggest production area in the company. We have a long history of cooperation, from Gjøa, Knarr, Nova and Veslefrikk. With more than 100 licences and stakes in 20 producing fields, we will be among the five biggest oil and gas producers in Norway”, said Mehren. Over the next few years, the owner-operated fields of Nova (Wintershall) and Dvalin (DEA) will come onstream. This will increase the total daily production by over 200,000 barrels of oil equivalents per day.