AI Air Liquide SA

FRANKFURT—Two top executives at Linde AG will depart the company following the failure of $60 billion merger talks that would have created the largest industrial gases maker, Linde said Tuesday.

Chief Executive Wolfgang Bü chele, embittered by the collapse of negotiations with Praxair Inc. a day ago, said he won't seek a new term when his contract expires next April.

"In my professional career, I have always measured myself according to my ability to attain the objectives I set," Wolfgang Bü chele said in a statement. "Based on that, I was personally disappointed that I could not reach the goal of creating the number one globally."

The surprise news of Mr. Bü chele's departure came within minutes after Linde said its chief financial officer, Georg Denoke, had left the company.

The executives had differences in opinion regarding the plan to combine with Praxair, people familiar with the matter said. Mr. Denoke, who would have been sidelined if a deal went through, sided with labor representatives on the supervisory board to oppose a merger with Praxair, these people said.

Linde shares jumped on Tuesday's news of management changes. news, closing up 4.6% at €144.85 ($162.61), on expectations a deal could be rekindled. A merger could eventually return to the negotiating table, according to people familiar with the talks, who cautioned that it wouldn't happen in the near-term.

Linde said it accepted its CEO's decision "with deep regret."

"Linde will now redouble its focus on its core markets and expand the company's competitive position based on its considerable inherent strengths," Linde said.

On Monday, Mr. Bü chele told employees in a letter he was "very disappointed" about the termination of talks but that concerns about the balance of power between Linde and Praxair superseded the desire for a merger. In the letter, seen by The Wall Street Journal, Mr. Bü chele said one of his central concerns was retaining Munich as Linde's traditional location. Praxair is based in Danbury, Connecticut.

Linde continued to stress the logic of combining with Praxair even while announcing the end of negotiations.

The companies explored a tie-up two years ago but put talks on hold after Linde issued profit warnings in the fourth quarter of 2015, a person familiar with the matter said. Talks resumed when Air Liquide SA pursued Airgas Inc. in a deal that concluded in May and restored Air Liquide to the industry's top spot.

Mr. Bü chele has been CEO since 2014. Linde said the search for a successor would begin right away.

Mr. Denoke will be replaced on an interim basis by Sven Schneider, currently the head of treasury at Linde, until a successor is found. Mr. Denoke has been with Linde since 2004, serving as CFO since 2006.

Write to Sarah Sloat at sarah.sloat@wsj.com and Eyk Henning at eyk.henning@wsj.com

(END) Dow Jones Newswires

September 13, 2016 14:35 ET (18:35 GMT)

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