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Abu Dhabi National Oil Co (ADNOC) is reportedly exploring the potential acquisition of Wintershall Dea, the European energy business supported by BASF SE. The valuation of Wintershall Dea in this prospective deal could surpass 10 billion euros ($11 billion). Among the interested parties evaluating the business, UK-listed Harbour Energy Plc is also a notable contender. While BASF and Wintershall Dea have not issued immediate comments, both ADNOC and Harbour Energy declined to provide official statements on the matter.
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In a separate development, BASF is currently in negotiations with the German government concerning state guarantees for the Russian activities of Wintershall Dea. This move comes as the energy company, a collaborative effort between BASF and Russian billionaire Mikhail Fridman's investment firm LetterOne, navigates the "new realities". As a result, Wintershall Dea has de-consolidated its Russian activities, with the country representing half of its production. This strategic reassessment aligns with broader shifts for German firms operating in the region.
Why it matters
As part of these changes, BASF CEO Martin Brudermueller announced in April of this year the company's intention to exit the energy business, with a market listing emerging as the preferred option. The move underscores the evolving dynamics and challenges faced by companies operating in the energy sector, particularly those with significant exposure to Russian activities amid geopolitical shifts and global energy market dynamics.
