Praxair-Linde merger clears final hurdle
The on-again, off-again and long-awaited merger between Danbury-based Praxair and Linde AG gained its final regulatory approval on Monday and the transaction creating the world’s largest industrial gas company is expected to close by the end of the month.
The deal will create a merger of equals with the companies having equal representation on the board of directors. Steve Angel, current CEO of Praxair, will remain as CEO of the new company, which will be called Linde and be worth $46 billion.
The closing of the all-stock transaction is expected to take place by Oct. 31. The companies have more than 80,000 employees across more than 100 countries. They serve more than two million customers.
“Today marks an important milestone in the formation of our new company,” Angel said in a statement. “It is a privilege for me to lead the talented people of two world-class organizations as we come together to form the undisputed leader in our industry. I am confident this team will create long-term value for all Linde plc stakeholders.”
Shares of Praxair will end on the New York Stock Exchange on Oct. 30, and Linde shares will start on Oct. 31 under the symbol LIN. Linde is based in Munich and shares will stop selling on the Frankfurt Stock Exchange on Oct. 26 and start under the symbol LIN on Oct. 29. As part of the agreement, Praxair shareholders will receive one share of Linde for each share of Praxair stock. Linde AG shareholders will receive 1.54 shares of Linde plc for each share tendered.
The merger creates a company with market capitalization of approximately $90 billion, according to Linde officials. The deal will leverage the strengths of each company, Linde officials added, with Linde’s expertise in engineering and technology and Praxair’s specialty in operations.
Linde officials said “value driven by targeted annual synergies and cost efficiencies” are expected to save the new company $1.1 billion to $1.2 billion over the next three years.
Danbury Mayor Mark Boughton said he has not heard from Praxair officials on what impact the merger will have on the company’s headquarters in the city. Praxair employs about 400 people in Danbury after moving its headquarters from the Matrix Corporate Center into the Berkshire Corporate park in 2016. Praxair paid $20 million for the former GE Capital building, with the purchase and renovation of the building assisted by a $30 million state incentive package.