22 December 2023

Harbour Energy to buy assets from Wintershall Dea for $11.2 billion

UK-based Harbour Energy has entered into an agreement to acquire the oil and gas assets of Wintershall Dea for US$11.2 billion, making Harbour Energy one of the world's leading independent producers. The payment includes a combination of shares and cash.

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London-listed Harbour Energy is looking to expand its horizons beyond the UK. The move comes in response to the government's imposition of a windfall profits tax on the sector in the wake of a sharp rise in energy prices in 2022, which led to Harbour making a loss in the first half of this year. The acquisition includes valuable oil and gas reserves in several countries, including Norway, Germany, Denmark, Argentina, Mexico, Egypt, Libya and Algeria. However, it does not include any of Wintershall's activities in Russia. Upon completion of the transaction, Harbour's oil and gas production will increase from approximately 190,000 barrels per day to more than 500,000 barrels.

Under the agreement, BASF, which owns a 72.7% stake in Wintershall Dea, will own 46.5% of Harbour after the acquisition. Harbour's shares closed at 297.40p on the day the deal was announced, marking a significant 21% rise - the highest level since March.

This acquisition fits into a broader trend of significant consolidation in the energy sector. Significant transactions in recent months include Exxon Mobil's acquisition of Pioneer Natural Resources for nearly $60 billion, Chevron's $53 billion takeover of Hess, and Occidental Petroleum's $10.8 billion deal to acquire CrownRock earlier this month.