BASF in Talks to Combine Oil-and-Gas Activities With LetterOne's DEA
November 24 2017 - 7:57AM
Dow Jones News
By Sarah Sloat
BASF SE (BAS.XE) said Friday that it is discussing a potential
merger of its oil-and-gas activities with those of DEA, which
belongs to LetterOne.
In such a combination, BASF would hold the majority of the
shares, BASF said. It added that an initial public offering of the
enterprise would be an option in the medium term.
"The outcome of the discussions is open and there is no
assurance that any transaction will be consummated," BASF said.
BASF's oil-and-gas activities are part of Wintershall, which
focuses on exploration and production. In 2016, sales at the
oil-and-gas segment of BASF were around 2.8 billion euros ($3.32
billion), and earnings before interest and taxes were about EUR500
million.
DEA is owned by LetterOne, a private Luxembourg-based investment
vehicle. It acquired DEA in March 2015 from RWE AG (RWE.XE).
Write to Sarah Sloat at sarah.sloat@wsj.com
(END) Dow Jones Newswires
November 24, 2017 08:42 ET (13:42 GMT)
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