Merger does the business for Wintershall and DEA
Commenting in the news that Wintershall and DEA are set to merge, Greig Aitken, principal analyst M&A, said: “DEA saw scale as key to future success and this deal certainly delivers.
“For Wintershall, the tie-up is a logical step en route to a future IPO, which will allow the BASF-owned company to escape the shadow of its chemical company parent.”
He added: “The deal will form one of Europe's largest independent E&P companies. Production from Wintershall DEA will rank below only the majors and Repsol in terms of European-headquartered producers.
“Both companies are internationally diverse, with strong European hubs, and both have material positions in Germany and Norway.
"The bulk of Wintershall's value lies in Russia, and it has a material position in Argentina, including exposure to the Vaca Muerta unconventional play.
"DEA has a second core in Egyptian gas, and is establishing a position in Mexico.”