Daily Management Review

BASF and LetterOne to merge oil and gas assets


The German concern BASF and LetterOne (owned by Russian billionaire Mikhail Fridman) signed an agreement on the merger of oil companies Wintershall and DEA. According to Wintershall’s statement, the transaction is expected to close in the first half of 2019.

At the end of last year, when the partners signed a protocol of intentions, they planned to complete the deal in the second half of 2018. Head of BASF Kurt Bock confirmed the date in February, specifying that it is about the third quarter of 2018.

Thus, the partners made a new statement on the course of the merger in the last days of the previously announced official deadline.

The transaction should be approved by antimonopoly bodies, foreign investment control bodies, and regulators in the field of subsoil use and Federal Network Agency of Germany, BASF says.

The merged company will be headed by the chairman of the board of Wintershall, Mario Mehren. DEA’s Head, Maria Moræus Hanssen, will become deputy chairman of the board of the joint venture and chief operating officer (COO).

source: reuters.com