LetterOne buys RWE Dea
The LetterOne Group and RWE AG today completed RWE’s sale of RWE Dea AG to LetterOne. In January, both parties had announced their plans to complete the transaction at the beginning of this month.
The agreed value of the deal is around €5.1 billion based on current exchange rates. Due to exchange rate fluctuations, this is a bit higher than the amount agreed on when the sale was announced in January.
Peter Terium, CEO of RWE AG: “The sale of RWE Dea demonstrates that even in difficult conditions, we continue to realize our plans. Both parties negotiated good value for money, and RWE can now focus fully on its core business.”
He continued by saying that the takeover was not only an important milestone for the RWE Group but that it was beneficial for all involved – including Dea and its workers.
“‘Dea gets a new owner who wants to invest long term in the oil and gas production business and will guide the company into a positive future.
Mikhail Fridman, Chairman of LetterOne: “We are delighted to have completed the acquisition of Dea. We now look forward to working with Dea’s management and staff. Our ambition is to develop and grow Dea. We are convinced that the current macroeconomic environment and the low oil price, give us an opportunity to achieve our ambition.”
What now with RWE Dea UK?
It is unclear what the transaction means for the RWE Dea UK, a British subsidiary of RWE Dea, which owns twelve producing North Sea oil and gas fields.
The UK Energy Secretary Edward Davey has warned about the effect that possible future sanctions imposed on LetterOne, and its Russian owners, may have on the continued operation of these twelve fields and the serious health and safety and environmental risks that may result.
Thus, in a statement issued Friday, February 28, Davey said he the proposal does not adequately and surely alleviate the concerns about the effect of potential sanctions. He said he had notified the companies involved that if the proposed acquisition were to proceed in its current form, he would be minded to require the companies to arrange for a further sale to a suitable third party.
Offshore Energy Today Staff