AFP :
German industrial gases maker Linde and its US competitor Praxair early yesterday said they had agreed the terms of a proposed $65bn “merger of equals” to create a global giant in the sector.
The agreement, which paves the way for the deal to be finalised, comes after a previous attempt at a tie-up failed in September amid reports of executive infighting over key positions and their locations.
“Linde and Praxair on Thursday announced that the companies intend to combine in a merger of equals under a new holding company,” the two firms said in a joint statement.
“Under the Linde brand, we want to combine our companies’ business and technology capabilities and form a global industrial gas leader,” Linde CEO Aldo Belloni said.
By joining forces, the two groups would overtake Linde’s historic French rival Air Liquide as the world number one industrial gas supplier, with combined annual revenues of more than $30bn (29bn euros).
In the statement, Linde and Praxair estimated that the new combined company would have a “market value in excess of $65bn”.
The merger would lead to annual savings of around $1bn, they added, “driven by scale benefits, cost savings and efficiency improvements”.
“The strategic combination between Linde and Praxair would leverage the complementary strengths of each across a larger global footprint and create a more resilient portfolio,” said Praxair chairman and chief executive Steve Angel.
Analysts have warned that the merger could face close regulatory scrutiny, as it would further shrink the number of large players in the market following Air Liquide’s takeover of US-based Airgas in May.
German industrial gases maker Linde and its US competitor Praxair early yesterday said they had agreed the terms of a proposed $65bn “merger of equals” to create a global giant in the sector.
The agreement, which paves the way for the deal to be finalised, comes after a previous attempt at a tie-up failed in September amid reports of executive infighting over key positions and their locations.
“Linde and Praxair on Thursday announced that the companies intend to combine in a merger of equals under a new holding company,” the two firms said in a joint statement.
“Under the Linde brand, we want to combine our companies’ business and technology capabilities and form a global industrial gas leader,” Linde CEO Aldo Belloni said.
By joining forces, the two groups would overtake Linde’s historic French rival Air Liquide as the world number one industrial gas supplier, with combined annual revenues of more than $30bn (29bn euros).
In the statement, Linde and Praxair estimated that the new combined company would have a “market value in excess of $65bn”.
The merger would lead to annual savings of around $1bn, they added, “driven by scale benefits, cost savings and efficiency improvements”.
“The strategic combination between Linde and Praxair would leverage the complementary strengths of each across a larger global footprint and create a more resilient portfolio,” said Praxair chairman and chief executive Steve Angel.
Analysts have warned that the merger could face close regulatory scrutiny, as it would further shrink the number of large players in the market following Air Liquide’s takeover of US-based Airgas in May.
