- Wintershall Dea’s exploration and production business sold to Harbour Energy for $2.15 billion and shares, excluding Russia-related activities.
- Transaction valued at $11.2 billion, completed earlier than expected.
September 03 2024 12:03:53 UTC– BASF announced the sale of Wintershall Dea’s exploration and production (E&P) business to Harbour Energy, excluding Russia activities, for $11.2 billion, including cash and shares.
The deal closed earlier than expected.
Wintershall Dea has completed the transfer of its global Exploration and Production (E&P) business to Harbour Energy plc. The transaction, finalized on September 3, 2024, excludes any assets related to Russia and includes significant production and development assets, as well as exploration rights across multiple countries, including Norway, Argentina, and Mexico.
In exchange, Wintershall Dea’s shareholders, BASF (72.7%) and LetterOne (27.3%), received a combined cash payment of $2.15 billion and newly issued shares amounting to a 54.5% stake in Harbour Energy, with BASF holding 39.6%.
The transaction, which values Wintershall Dea’s assets at $11.2 billion, also includes the transfer of outstanding bonds worth approximately $4.9 billion to Harbour Energy. This move marks a pivotal step for BASF in its strategic exit from the oil and gas sector, allowing for the monetization of its stake in Harbour Energy, a company listed on the London Stock Exchange.
Concurrently, Wintershall Dea’s remaining business related to Russia will be managed by its current owners, with plans for a phased withdrawal announced in early 2023. This segment will continue to benefit from substantial federal guarantees.
Additionally, leadership changes accompanied the transaction, with the resignation of key executives including CEO Mario Mehren. The company will also undergo a legal restructuring, transitioning from an Aktiengesellschaft (AG) to a Gesellschaft mit beschränkter Haftung (GmbH).
This transaction highlights a significant shift in BASF’s business strategy, focusing on simplifying its portfolio and emphasizing sustainability by exiting the fossil fuel industry.