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BASF: to merge oil and gas business with LetterOne's DEA.

(CercleFinance.com) - Germany's BASF and Luxembourg-based investment firm LetterOne said on Friday that they have signed a letter of intent aimed at merging their oil and gas subsidiaries.

The oil and gas business of BASF is being bundled into the Wintershall Group, a producer of crude oil and natural gas, including the gas transportation business.

The oil and gas business of LetterOne includes DEA Deutsche Erdöl and its subsidiaries.

By combining both these German-based entities, BASF and LetterOne plan to optimise the portfolio footprint of the combined business and make synergies.

Over the medium term, the companies intend to list the newly-created "Wintershall DEA" through an initial public offering.

"Wintershall DEA would have significant growth potential and be one of the largest independent European exploration and production companies," they write in a press release.

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