Russia's LetterOne Buys German Oil and Gas Company for $5.1 Bln

Germany’s company RWE AG completed a deal to sell RWE Dea AG to LetterOne.

German utility RWE AG and LetterOne Group, founded by the owners of Russia’s Alfa Group Mikhail Fridman and German Khan, closed a five billion euro deal to sell RWE Dea AG, RWE’s press release said.

RWE Chief Executive Peter Terium noted that after the negotiation RWE can now focus fully on its core business.

Mikhail Fridman expressed confidence that despite the current macroeconomic situation and the low price of oil, the deal is a bargain and gives LetterOne the opportunity to achieve common ambitions together with RWE.

RWE AG is one of Europe’s five leading electricity and gas companies. It supplies nearly 20 million electricity customers and about 10 million gas customers with energy. LetterOne is based in Luxemburg and initially has  invested in the oil-and-gas and telecommunication fields.