Energy - Oil company Harbour to take over Wintershall Dea
The British oil company Harbour Energy wants to take over the BASF subsidiary Wintershall Dea. The Ludwigshafen-based company announced on Thursday that an agreement had been signed between the chemical giant and the other Wintershall owner LetterOne and Harbour to merge the businesses.
The head offices of Wintershall Dea are not part of the transaction, it said. This will ultimately require the closure of the departments in Kassel and Hamburg. However, Harbour intended to transfer some employees to the combined company.
Wintershall's head office in Kassel confirmed the closure plans. "For the Wintershall Dea team in Kassel and Hamburg and for me personally, this news, especially so close to Christmas, is a great disappointment," said CEO Mario Mehren. No further comment will be made at this time, he said. Employees are to be informed in more detail at an internal event on Friday. According to a spokesman, the Group employs around 600 people at the Kassel site and a further 300 in Hamburg.
Wintershall valued at over ten billion
BASF holds 72.7 percent of the oil and gas company and the investment company LetterOne 27.3 percent. The two owners are to receive a total of 2.15 billion dollars (1.96 billion euros) and a share in the combined company. BASF's cash share amounts to 1.56 billion dollars, according to the announcement.
The Ludwigshafen-based company is to receive a 39.6 percent stake in the merged company. The transaction values Wintershall Dea at around 10.2 billion euros. The deal is expected to close in the fourth quarter of 2024 - subject to antitrust and regulatory approvals.
BASF announced that the agreement provides for the transfer of the production and development business as well as exploration rights in Norway, Argentina, Germany, Mexico, Algeria, Libya, Egypt and Denmark and licenses for the capture and storage of carbon dioxide.
The Russian-related business will be excluded, the legal separation of which is being driven forward according to BASF. BASF and LetterOne will remain the owners of this company. The business includes shares in the joint ventures in Russia, a share in Wintershall in Libya, in Wintershall Noordzee in the Netherlands and in Nord Stream.
Announcement
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- The deal, worth around 10.2 billion euros, will see Harbour Energy take over a significant portion of Wintershall Dea, a subsidiary of BASF and currently co-owned by LetterOne.
- Despite the merger, BASF and LetterOne will retain ownership of Wintershall's Russian-related business, which includes shares in joint ventures and Wintershall's stake in Libya and the Netherlands.
- The British oil company Harbour Energy plans to transfer some employees from the departing departments in Kassel and Hamburg to the combined company.
- The closure of Wintershall Dea's departments in Kassel and Hamburg is expected to impact around 900 employees, as the company currently employs around 600 people at the Kassel site and a further 300 in Hamburg.
- Harbour Energy's takeover of Wintershall Dea includes the transfer of production and development business, as well as exploration rights in various countries, such as Norway, Argentina, Germany, and Denmark.
- BASF's share in the combined company will be around 39.6%, and the transaction will value Wintershall at over ten billion dollars, making it an attractive acquisition for Harbour Energy.
- Wintershall's headquarters in Hamburg and Cassel are not included in the transaction, leading to the closure of these departments and potential job losses for employees.
Source: www.stern.de
