Germany's DEA agrees to buy Mexico's Sierra Oi

German energy firm DEA said it agreed to buy independent Mexican company Sierra Oil and Gas at a time of growing uncertainty over the private sector’s role in Mexico’s oil industry.

In a statement, DEA chief executive Maria Moraeus Hanssen said the acquisition of Sierra would provide DEA with a “high-quality exploration and appraisal portfolio in one of the world’s most sought-after offshore basins.”

“The transaction also underlines our confidence in the future of Mexico’s energy industry,” she added.

The Financial Times, which first reported the deal, said the transaction was worth around $500 million.