RWE to Proceed With Dea Sale to LetterOne

By Selina Williams 

LONDON--German utility RWE AG said Sunday it would proceed with the sale of its oil and gas unit Dea to the LetterOne investment fund backed by Russian billionaire Mikhail Fridman, despite a move by the U.K. government to block part of the deal.

The U.K. Department of Energy and Climate Change, or DECC, said Saturday that it wouldn't approve the sale of the British North Sea gas fields from RWE to Mr. Fridman because of concerns the oligarch could be a future target of sanctions.

"The decision by DECC does not affect the completion of the transaction on March 2, 2015," RWE said in a statement." Only if the [European Union] or the U.S. impose sanctions on LetterOne or its owners prior to the first anniversary of the completion, RWE will have to reacquire the U.K. business," the German company added.

Dea has oil and gas assets elsewhere in Europe and around the world. The EUR5 billion ($5.6 billion) Dea deal has all other relevant approvals from other countries involved in the transaction.

Write to Selina Williams at [e-mail]

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