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 selina.williams@wsj.com
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