Germany-based multinational chemical company Linde and US industrial gas company Praxair have agreed to the outline of a deal that will combine the companies in a merger of equals under Linde’s name. Current Linde and Praxair shareholders will each hold about 50% of the merged company under the terms of the deal.
Linde and Praxair confirmed that they had resumed negotiations on a merger in late November after deal talks collapsed earlier this year.
The deal may take a while to close, pending a final agreement and regulatory approvals. Praxair indicated in a letter to employees that regulatory reviews may not be completed until the middle of 2018.
2nd gen biofuels
In a web statement, Praxair said its industrial gases are crucial in the production of second-generation biofuels.
The combination would allow Linde to retake the position of largest global producer of industrial gases with combined pro forma revenue of approximately $30 billion (€28 billion).
It would take the lead back from Air Liquide, which has pro forma annual revenue of about $22 billion and edged ahead of Linde following Air Liquide's acquisition of Airgas earlier this year. The combined Linde-Praxair would have a market value in excess of $65 billion.
Praxair chairman and CEO Steve Angel will become CEO of the combined company. Wolfgang Reitzle, the current chairman of Linde’s supervisory board, will be chairman. The holding company would be domiciled in a neutral member state of the European Economic Area with the CEO based at Praxair's Danbury, Connecticut, headquarters. Corporate functions would be split between Danbury and Munich, Germany, Linde’s current headquarters.
“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 with increased exposure to long-term macro growth trends,” said Angel. “We consider this to be a true strategic merger as it brings together the capabilities, talented people, and best-in-class processes of both companies.”
Fount: http://biofuels-news.com/display_news/11593/linde_and_praxair_give_green_light_to_merger/
