Praxair Holds Merger Discussions With Germany's Linde
August 15 2016 - 7:20PM
Dow Jones News
Praxair Inc. is in discussions to combine with Germany's Linde
AG, people familiar with the matter said, in a major deal that
would create the world's largest industrial-gas supplier and
continue a wave of consolidation in the industry.
Details of the talks couldn't be learned, and one person
cautioned they are fragile and could fall apart. If there is an
agreement, there is also no guarantee antitrust regulators would
approve it. A deal would combine companies each worth about $30
billion and rank as one of the largest tie-ups in a strong year for
mergers.
The news comes less than three months after two major rivals of
the companies combined, setting off another possible wave of
consolidation in an industry hit by declining energy prices and
sluggish economic growth. Air Liquide SA in May bought Airgas Inc.
for about $10 billion, enabling the French company to reclaim the
number one spot among makers of gases used in manufacturing, food
production, health care and the like, with annual revenue of more
than $23 billion.
Munich-based Linde, which makes industrial and medical gases and
builds plants for chemical producers and others, had taken the No.
1 position from Air Liquide with its $14 billion takeover of the
UK's BOC PLC in 2006. A combined Linde and Praxair would again
leapfrog Air Liquide, creating a company with more than $30 billion
in revenue.
But in the wake of the Airgas deal, some analysts questioned
whether antitrust regulators would allow yet another large takeover
in the industry.
Write to Eyk Henning at eyk.henning@wsj.com and Dana Mattioli at
dana.mattioli@wsj.com
(END) Dow Jones Newswires
August 15, 2016 19:05 ET (23:05 GMT)
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