Under the terms of the agreement, BASF will initially hold 67% of the combined company, Wintershall DEA. The listing will come “sooner rather than later,” said Lord John Browne, the executive chairman of L1 Energy, LetterOne’s energy investment arm. Saudi Arabia’s high-profile plans to list its state oil company derailed this year and other energy-industry listings in Europe have had a mixed reception. Investors are also increasingly pressing big oil companies to show they have a strategy to move beyond fossil fuels in line with efforts to curb global warming. Once the deal is completed, the combined Wintershall DEA will issue preference shares to BASF reflecting the value of the unit.

Source: Wall Street Journal September 28, 2018 13:30 UTC