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This Isn't Hot Air: Praxair, Linde Discussing Possible Merger
08/16/2016 - Industrial gas supplier Praxair Inc. said it is discussing a possible merger with Germany’s Linde AG, the company announced on Tuesday.
“These discussions are ongoing and there can be no assurance that they will result in a transaction, or on what terms any transaction may occur,” Praxair said in a statement.
The announcement followed a report in the Wall Street Journal that the two had opened discussions.
However, The Journal reported that it is unclear whether regulators would allow such a deal to go through, pointing out that a merger would put together two companies each worth about US$30 billion. It also said that a merger would allow a combined Praxair and Linde to leapfrog competitor Air Liquide in terms of size.
Incidentally, Air Liquide in May finalized its US$13.4 billion acquisition of Airgas, which established it as North America’s largest industrial gas supplier.
The (London) Financial Times, citing an unidentified source who is familiar with the situation, said regulatory approval of the Air Liquide-Airgas merger gave Praxair executives confidence that the Linde deal could pass muster.
“The acquisition is strategic in nature as it will provide the company the benefit of backward integration of this critical input,” JSW Steel said in a statement.
The announcement followed a report in the Wall Street Journal that the two had opened discussions.
However, The Journal reported that it is unclear whether regulators would allow such a deal to go through, pointing out that a merger would put together two companies each worth about US$30 billion. It also said that a merger would allow a combined Praxair and Linde to leapfrog competitor Air Liquide in terms of size.
Incidentally, Air Liquide in May finalized its US$13.4 billion acquisition of Airgas, which established it as North America’s largest industrial gas supplier.
The (London) Financial Times, citing an unidentified source who is familiar with the situation, said regulatory approval of the Air Liquide-Airgas merger gave Praxair executives confidence that the Linde deal could pass muster.
In a separate development, Indian steelmaker JSW Steel said it is buying out Praxair’s stake in their JSW Praxair Oxygen Pvt. Ltd. joint venture for US$36 million in cash, according to India’s online VCCircle publication.
According to the publication, JSW is taking all of Praxair's 74 percent stake in the business.
“The acquisition is strategic in nature as it will provide the company the benefit of backward integration of this critical input,” JSW Steel said in a statement.
