Harbour Energy seeks to acquire Wintershall DEA, a subsidiary of the chemical giant BASF. On Thursday, it was announced that BASF, along with LetterOne as another owner of Wintershall, and Harbour, have signed an agreement to merge their businesses. However, the Wintershall headquarters in Kassel and Hamburg are obstacles to the transaction and will therefore need to be closed. Harbour, however, plans to take on some employees in the merged company.

The Wintershall headquarters in Kassel confirmed the closure plans, and the CEO, Mario Mehren, expressed disappointment about the news shortly before Christmas. No further information will be released at this time, and employees will be informed in detail during an internal event on Friday.

The Trade Union IG BCE expresses concern about the impending closure of the Wintershall headquarters. Michael Winkler, representative of the Trade Union, emphasized the social responsibility that BASF and LetterOne have for the affected employees. After more than 50 years as the owner of Wintershall, BASF is obligated towards the employees.

The acquisition of Wintershall DEA's oil and gas business is expected to cost a total of $2.15 billion (€1.96 billion), as well as an ownership stake in the merged company. BASF will receive $1.56 billion in cash and a 39.6% stake in the combined company. Wintershall DEA values this at a total of approximately €10.2 billion. The completion of the transaction is targeted for the fourth quarter of 2024, subject to regulatory approvals.

The agreement stipulates that BASF transfers its production and development business as well as exploration rights in Norway, Argentina, Germany, Mexico, Algeria, Libya, Egypt, and Denmark, along with licenses for carbon dioxide capture and storage. The business related to Russia, which is to be separated from BASF, is excluded. This includes shares in joint ventures in Russia, Wintershall in Libya, Wintershall Noordzee in the Netherlands, and Nord Stream.

The announced acquisition of Wintershall DEA by the British oil company Harbour Energy initially caused positive reactions among BASF shareholders. The share price rose by 2.9 percent, but quickly returned to its original level. Most recently, the increase was 0.04 percent. In contrast, Harbour Energy's share price rose by more than 23 percent and reached its highest level since February.

The analysis firm Jefferies rated the stock of Harbour Energy as "Buy" with a target price of 340 pence and stated that this is the major international deal that the company has always talked about.

The separation of Wintershall DEA is an important step for BASF to sell its oil and gas business. For the shareholders of Harbour Energy, the takeover means a pleasing expansion of their company.