Largest German oil and gas company Wintershall and its rival DEA, which is controlled by Russian billionaire Mikhail Fridman, have completed their merger, and the shareholders plan to float some shares of the merged company via an initial public offering (IPO) in the second half of 2020 or later, Wintershall Dea said on Thursday
MOSCOW (Pakistan Point News / Sputnik - 02nd May, 2019) Largest German oil and gas company Wintershall and its rival DEA, which is controlled by Russian billionaire Mikhail Fridman, have completed their merger, and the shareholders plan to float some shares of the merged company via an initial public offering (IPO) in the second half of 2020 or later, Wintershall Dea said on Thursday.
"Wintershall Holding GmbH (Wintershall) and DEA Deutsche Erdoel AG (DEA) have completed their merger. ... [The shareholders] expect to offer shares in Wintershall Dea through an Initial Public Offering (IPO) in the second half of 2020, subject to market conditions," the statement said.
The integration of the two companies is expected to be completed in a year, it added.
The unified company expects to release synergies of at least 200 million Euros ($224 million) annually as of the third year following the closing of the transaction. It plans to cut around 1,000 of its 4,200 full-time employees globally.
In 2018, the two companies' joint hydrocarbon production amounted to 590,000 barrels of oil equivalent, and the merged company plans to boost daily output by 6 to 8 percent annually to 750,000-800,000 barrels between 2021 and 2023. As of the end of 2018, proven reserves of Wintershall and DEA stood at 2.4 billion barrels of oil equivalent.
