Abu Dhabi National Oil Company (ADNOC) is reportedly contemplating the acquisition of European energy firm Wintershall Dea, signaling a strategic move to bolster its international presence, as reported by Bloomberg, citing informed sources.
Wintershall Dea, valued at potentially over €10 billion ($11 billion), has garnered interest from various entities, including UK-listed Harbour Energy. German chemical giant BASF, holding a substantial 73% stake in Wintershall Dea, has initiated the exploration of a sale, prompting speculations about potential suitors.
Russian billionaire Mikhail Fridman-backed investment firm LetterOne currently owns the remaining 27% shares in Wintershall Dea. Meanwhile, ADNOC is concurrently engaged in negotiations with Austria’s OMV to establish a significant petrochemical venture valued at more than €30 billion (Dh120.19 billion). Additionally, discussions are underway regarding the potential acquisition of German chemicals company Covestro and Brazilian petrochemical major Braskem.
Despite the apparent interest, any deal is unlikely to materialize until the following year due to the pending approval from the Russian Government for Wintershall Dea’s exit from Russia. The company had announced its intention to withdraw from Russia in January, a decision catalyzed by the conflict in Ukraine. However, the process has proven intricate, with Wintershall Dea CEO Mario Mehren acknowledging the growing challenges in divesting its stakes in Russian assets co-owned with Gazprom.
The planned exit from Russia is poised to have significant repercussions for Wintershall Dea, translating into a loss of 50% of its output and 60% of its reserves. Notably, the CEO has sought to assuage investor concerns by emphasizing the resilience of the company’s non-Russian operations, aiming to mitigate potential adverse effects stemming from the withdrawal.
Representatives from ADNOC and Harbour Energy have opted not to comment on the ongoing developments, while requests for statements from BASF and Wintershall Dea have yet to elicit responses.