BASF says it will postpone IPO of Wintershall Dea

German chemical company BASF announced that it will postpone the planned initial public offering of its Wintershall Dea business until further notice.

Wintershall Holding GmbH and DEA Deutsche Erdoel AG, two successful companies with a long tradition, formed Europe’s leading independent natural gas and oil company Wintershall Dea, in May  2019.

Based on the current market conditions, the shareholders of Wintershall Dea – BASF and LetterOne – have decided to postpone the IPO, which was planned for the second half of 2021,  subject to market conditions.

“Strategically, BASF remains fully committed to divest its share in Wintershall Dea,” said Dr. Hans-Ulrich Engel, vice chairman of the  Board of Executive Directors and chief financial officer of BASF SE. 

While oil and gas prices have recovered considerably, “this improvement is not yet fully reflected in the forward-looking broker consensus assumptions. In addition, market valuations of oil and gas companies have for various reasons not again reached the level the shareholders expect to kick off the IPO. Due to its very robust performance, Wintershall Dea remains a strong cash contributor to its shareholders, BASF said in a statement.