Ludwigshafen – BASF is pushing ahead with the separation of its oil and gas business Wintershall Dea. Important locations will be closed in the planned sale to the British oil company Harbor.
The takeover was agreed between BASF, LetterOne and Harbor Energy. The companies signed a corresponding agreement for this purpose. Wintershall Dea’s main locations will not be taken over. The closure of the locations in Kassel and Hamburg is therefore likely. However, Harbor plans to transfer some employees to the new company.
Hundreds of employees affected by restructuring – BASF receives almost 40 percent of the new company
Wintershall’s CEO, Mario Mehren, confirmed the closure plans in Kassel. He expressed his disappointment at this development, especially so close to Christmas. He did not want to give any further details at this time. The employees were informed at an internal event on Friday. According to a spokesman, around 600 people work in Kassel and 300 in Hamburg.
BASF owns 72.7 percent of Wintershall Dea, LetterOne holds 27.3 percent. Both owners will receive a total of $2.15 billion. The chemical company, headquartered in Ludwigshafen (Rhineland-Palatinate), will receive a cash share of $1.56 billion. BASF will also hold 39.6 percent of the merged company. The transaction values Wintershall Dea at around 10.2 billion euros.
BASF retains shares in Russian business and Nord Stream
The deal is expected to close in the fourth quarter of 2024 and is subject to antitrust and regulatory approvals. BASF also announced that the agreement includes the transfer of the production and development business. Also included are exploration rights in several countries as well as licenses for carbon capture and storage.
Wintershall Dea’s Russia-related business is excluded from this agreement. The chemical company is pushing forward the legal separation of this area. BASF and LetterOne remain the owners of this company and retain their shares in Russia, Libya, the Netherlands and Nord Stream. There was only recently a change in management at the Ludwigshafen site. (sba/dpa)
This article was machine-edited and carefully reviewed by editor Stephanie Bach before publication.