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.
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"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)