Merger BASF May Get Into Partnership with Letter One
The mega chemical company has plans to carry out a possible merger with Letter One’s oil and gas activities. If the deal goes as planned, BASF will hold majority of the shares in the joint enterprise.
Ludwigshafen/Germany – BASF is in discussions regarding a potential merger of BASF Group’s oil and gas activities with Letter One’s oil and gas activities bundled in the DEA Group. BASF would hold the majority of the shares in the joint enterprise. An Initial Public Offering of the joint 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’s oil and gas activities are bundled in the Wintershall Group. Wintershall focuses on exploration and production in oil and gas-rich regions in Europe, North Africa, Russia, South America and the Middle East. Together with Gazprom, the company is also active in the transport of natural gas in Europe. For the full year 2016, net sales of the oil & gas segment of the BASF Group amounted to around 3.32 billion dollars.