• 4 hours This Will Be the Answer From China On U.S. Tariffs
  • 1 hour Bad News For The Climate: Coal Burning, And Carbon Emissions, Are On The Rise Again
  • 6 hours France Terrorist Attack?! At Least One Dead In French Supermarket Hostage-Taking
  • 1 day Snowden Reveals Bitcoin Transactions Being Tracked by NSA
  • 6 hours China's Yaun/Gold backed Futures contracts
  • 11 hours Twitcoin....
  • 2 hours The Facebook/Cambridge Analytica Scandal
  • 2 hours U.S. Charges, Sanctions Iranians For Global Cyber Attacks on behalf of Tehran. What about sanctions on Russia?
  • 2 days Elon Musk’s $2.6 Billion Tesla Challenge
  • 3 hours Surprise! Aramco Scraps International Listing Plans
  • 1 day Getting out of oil .. now
  • 2 days U.S. Arrests Iranian Over Alleged $115 Million Sanctions Evasion Scheme Involving Venezuelan Housing Project
  • 2 days Too much or doable - $900 Billion Annual Investments Needed In Renewables By 2030
  • 1 day EU Proposes Online Turnover Tax For Big Tech Firms
  • 1 day U.S. Judge To Question Big Oil On Climate Change
  • 21 hours Country With Biggest Oil Reserves Biggest Threat to World Economy
The Death Of Traditional Power Grids

The Death Of Traditional Power Grids

Centralized power grids are soon…

Will China’s New Oil Futures Flop?

Will China’s New Oil Futures Flop?

China’s historic oil futures contract…

Wintershall And LetterOne In Talks For $12B Oil, Gas Merger


Germany’s chemicals company BASF said on Friday that it was in talks to potentially merge its oil and gas business, Wintershall Group, with the oil and gas operations of the LetterOne holding group, owned by Russian billionaire Mikhail Fridman.  

If talks are successful and the parties reach an agreement, BASF would hold the majority of the shares in the joint enterprise, while LetterOne’s oil and gas business DEA Group will hold the remainder.

Launching an Initial Public Offering (IPO) of the joint enterprise would be an option in the medium term, BASF said, but noted that discussions were ongoing and there was no certainty that the parties would reach a deal on a transaction.

Talks between Wintershall and Fridman’s DEA Group are at an advanced stage, and the resulting company could be valued at more than $11.856 billion (10 billion euro), people familiar with the talks told Bloomberg.

Wintershall—which operates in exploration and production in oil and gas-rich regions in Europe, North Africa, Russia, South America, and the Middle East and in transport of natural gas in Europe—generated net sales of some $3.32 billion (2.8 billion euro), and earnings before interest and tax (EBIT) of $593 million (500 million euro).

Patrick Lambert at brokerage Raymond James values Wintershall at some $11.86 billion-14.23 billion (10-12 billion euro).

Related: Tesla Completes World’s Largest Battery

“BASF’s exposure to oil and gas has failed to deliver the expected hedge for its chemical’s portfolio, and has led to increased volatility in terms of its cash flow generation,” Lambert told Reuters.  

Via LetterOne, Russian tycoon Fridman bought DEA from Germany’s RWE in 2015 at an enterprise value of $6.05 billion (5.1 billion euro).

Fridman—who has made his fortune in oil, banking, and telecoms—has a net worth of $15 billion. He is on the 75th place on Forbes 2017 World’s Billionaires list and #7 among the wealthiest Russian businessmen.   

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:

Join the discussion | Back to homepage

Leave a comment
  • John on November 30 2017 said:
    Despite the sanctions, European companies should accept this agreement. Resources of russia allow at low prices to supply high-quality fuel and energy resources. The crisis in the countries of the Western world has led to the fact that no one wants to cooperate with the United States and expensive shale oil. The right decision always lies on the surface and the European community of the oil industry realizes that further inaction in this direction will only aggravate the current state of affairs.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News