Is BASF in line for a billion-dollar deal?
Oil giant Adnoc is examining the takeover of Wintershall
November 24, 2023, 4:28 a.m
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BASF holds 73 percent of the German oil company Wintershall Dea. But the group is considering a sale – and could find a buyer in Abu Dhabi. According to a report, Adnoc is considering a takeover, as was the case with the Leverkusen-based plastics company Covestro.
According to a report, the oil company Adnoc from the Emirate of Abu Dhabi is considering a takeover offer for the BASF-controlled oil company Wintershall Dea. The agency reported that the Arab company, which is currently looking to expand its global presence with spectacular acquisitions, has been considering a purchase offer for Wintershall for some time Bloomberg citing people familiar with the project.
The German company could be valued at more than ten billion euros. BASF, for its part, discussed selling its 73 percent stake in Wintershall with consultants. The remainder of Wintershall is held by investor Mikhail Fridman’s investment company LetterOne.
The agency also reported that the British oil and gas company Harbor Energy was also among the interested parties that had examined Wintershall Dea. According to the report, no comments were received from Adnoc and BASF. Wintershall could not initially be reached for comment. Harbor Energy declined to comment. Wintershall Dea was created in May 2019 through the merger of Wintershall Holding GmbH and DEA Deutsche Erdoel AG.
Wintershall Dea recently slipped deep into the red. The bottom line was that there was a loss of 535 million euros, as the company announced at the end of October. After the end of its business in Russia, which recently accounted for around 50 percent of total production, the group is on a cost-cutting path. In September it was announced that around one in four of the more than 2,000 jobs worldwide would be cut. Around 300 jobs are affected in Germany.
Adnoc has made a billion-dollar takeover offer for the Leverkusen-based plastics group Covestro and is talking to the Austrian OMV about merging their petrochemical divisions Borealis and Borouge. The oil multinational is also looking for acquisitions in Africa.