Linde in merger talks with Prax­air

The Myanmar Times - - International Business -

GER­MAN in­dus­trial gas sup­plier Linde has con­firmed re­ports that it was “in pre­lim­i­nary dis­cus­sions about a pos­si­ble merger” with its US com­peti­tor Prax­air.

“Dis­cus­sions are tak­ing place and have yet to lead to any con­crete re­sult or agree­ment,” Linde said in a brief state­ment af­ter re­ports that talks had started over a po­ten­tial tie-up.

“At present it is un­fore­see­able whether there will be a trans­ac­tion,” Linde added.

Linde shares soared 11 per­cent at one point in Frank­furt trad­ing. In New York Prax­air stock was up more than 5pc in early deals.

A po­ten­tial merger be­tween the two com­pa­nies would cre­ate a gi­ant that would over­take French group Air Liq­uide as the world’s num­ber one sup­plier of in­dus­trial gas.

But it would also slash the num­ber of large play­ers on the world in­dus­trial gas mar­ket to three, with some risk of chal­lenges from com­pe­ti­tion au­thor­i­ties in the United States or the Euro­pean Union.

Air Liq­uide took the top spot from Linde by seal­ing a deal at the end of May for the ac­qui­si­tion of US firm Air­gas, which should take its an­nual rev­enues to more than 20 bil­lion eu­ros (US$22.4 bil­lion).

But Linde and Prax­air com­bined would have es­ti­mated an­nual rev­enues of more than $30 bil­lion – rob­bing Air Liq­uide of the top spot once again.

The two firms have dis­cussed sell­ing off some as­sets to al­lay an­titrust reg­u­la­tors’ fears, Bloomberg News re­ported, cit­ing sources fa­mil­iar with the talks.

Linde em­ploys 64,000 peo­ple world­wide, while Con­necti­cut-based Prax­air has 26,000 staff. –

Photo: EPA

Ger­man in­dus­trial gas maker Linde em­ploys 64,000 peo­ple world­wide.

Newspapers in English

Newspapers from Myanmar

© PressReader. All rights reserved.