diff --git a/libyasm/expr.c b/libyasm/expr.c
index c2c868ed..fa817ebd 100644
--- a/libyasm/expr.c
+++ b/libyasm/expr.c
@@ -846,6 +846,68 @@ expr_expand_equ(yasm_expr *e, yasm__exprhead *eh)
     return e;
 }
 
+static yasm_expr *
+expr_simplify_seg(yasm_expr *e)
+{
+    yasm_expr *sube, *seg;
+
+    if (e->op != YASM_EXPR_SEG && e->op != YASM_EXPR_WRT)
+        return e;
+    if (e->terms[0].type != YASM_EXPR_EXPR)
+        return e;
+    sube = e->terms[0].data.expn;
+
+    seg = yasm_expr_extract_deep_segoff(&sube);
+    if (!seg)
+        return e;
+
+    if (e->op == YASM_EXPR_SEG) {
+        e->op = YASM_EXPR_IDENT;
+        yasm_expr_destroy(sube);
+        e->terms[0].data.expn = seg;
+    } else if (e->op == YASM_EXPR_WRT) {
+        yasm_expr *old_base, *new_base;
+        yasm_expr *wrt, *off;
+        unsigned long line = e->line;
+
+        off = e;
+        wrt = yasm_expr_extract_wrt(&off);
+
+        assert(wrt != NULL);
+
+        old_base = yasm_xmalloc(sizeof(yasm_expr));
+        old_base->op = YASM_EXPR_MUL;
+        old_base->line = line;
+        old_base->numterms = 2;
+        old_base->terms[0].type = YASM_EXPR_INT;
+        old_base->terms[0].data.intn = yasm_intnum_create_int(16);
+        old_base->terms[1].type = YASM_EXPR_EXPR;
+        old_base->terms[1].data.expn = seg;
+
+        new_base = yasm_xmalloc(sizeof(yasm_expr));
+        new_base->op = YASM_EXPR_MUL;
+        new_base->line = line;
+        new_base->numterms = 2;
+        new_base->terms[0].type = YASM_EXPR_INT;
+        new_base->terms[0].data.intn = yasm_intnum_create_int(-16);
+        new_base->terms[1].type = YASM_EXPR_EXPR;
+        new_base->terms[1].data.expn = wrt;
+
+        e = yasm_xmalloc(sizeof(yasm_expr)+sizeof(yasm_expr__item));
+        e->op = YASM_EXPR_ADD;
+        e->line = line;
+        e->numterms = 3;
+        e->terms[0].type = YASM_EXPR_EXPR;
+        e->terms[0].data.expn = off;
+        e->terms[1].type = YASM_EXPR_EXPR;
+        e->terms[1].data.expn = old_base;
+        e->terms[2].type = YASM_EXPR_EXPR;
+        e->terms[2].data.expn = new_base;
+    }
+
+    return e;
+}
+
 static yasm_expr *
 expr_level_tree(yasm_expr *e, int fold_const, int simplify_ident,
                 int simplify_reg_mul, int calc_bc_dist,
@@ -855,6 +917,7 @@ expr_level_tree(yasm_expr *e, int fold_const, int simplify_ident,
     int i;
 
     e = expr_xform_neg(e);
+    e = expr_simplify_seg(e);
 
     /* traverse terms */
     for (i=0; i<e->numterms; i++) {
@@ -866,16 +929,6 @@ expr_level_tree(yasm_expr *e, int fold_const, int simplify_ident,
                                 expr_xform_extra, expr_xform_extra_data);
     }
 
-    /* Check for SEG of SEG:OFF, if we match, simplify to just the segment */
-    if (e->op == YASM_EXPR_SEG && e->terms[0].type == YASM_EXPR_EXPR &&
-        e->terms[0].data.expn->op == YASM_EXPR_SEGOFF) {
-        e->op = YASM_EXPR_IDENT;
-        e->terms[0].data.expn->op = YASM_EXPR_IDENT;
-        /* Destroy the second (offset) term */
-        e->terms[0].data.expn->numterms = 1;
-        expr_delete_term(&e->terms[0].data.expn->terms[1], 1);
-    }
-
     /* do callback */
     e = expr_level_op(e, fold_const, simplify_ident, simplify_reg_mul);
     if (calc_bc_dist || expr_xform_extra) {