BASF in Talks to Combine Oil-and-Gas Activities With LetterOne's DEA

BASF SE (BAS.XE) said Friday that it is discussing a potential merger of its oil-and-gas activities with those of DEA, which belongs to LetterOne.

In such a combination, BASF would hold the majority of the shares, BASF said. It added that an initial public offering of the 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 said.

BASF's oil-and-gas activities are part of Wintershall, which focuses on exploration and production. In 2016, sales at the oil-and-gas segment of BASF were around 2.8 billion euros ($3.32 billion), and earnings before interest and taxes were about EUR500 million.

DEA is owned by LetterOne, a private Luxembourg-based investment vehicle. It acquired DEA in March 2015 from RWE AG (RWE.XE).

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(END) Dow Jones Newswires

November 24, 2017 08:42 ET (13:42 GMT)