Harbour Energy plans to buy the upstream assets of Wintershall Dea for $11.2 billion in cash and shares.

The deal includes Wintershall Dea's assets in multiple countries and its carbon-dioxide capture and storage licenses in Europe, but excludes assets in Russia and joint ventures with Russian companies.

The acquisition will make Harbour Energy one of the world's largest independent oil and gas companies and increase its free cash flow.

BASF, the majority stakeholder in Wintershall Dea, will have a significant ownership position in Harbour Energy post deal.

This acquisition is part of a wave of M&A activity in the sector, following major deals by Exxon Mobil, Chevron, and Occidental Petroleum.