By Mauro Orru

 

BASF SE is postponing the initial public offering of its natural gas-and-oil subsidiary Wintershall Dea after 2021, citing current market conditions for the sector.

The German chemicals company said Wednesday that it made the decision along with LetterOne, a Wintershall Dea shareholder.

The IPO was slated for the second half of 2021, but BASF said that while oil and gas prices have recovered considerably, such an improvement isn't yet fully reflected in broker consensus assumptions.

"Strategically, BASF remains fully committed to divest its share in Wintershall Dea," BASF Chief Financial Officer Hans-Ulrich Engel said.

 

Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94

 

(END) Dow Jones Newswires

June 16, 2021 10:31 ET (14:31 GMT)

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