By Leslie Picker
LINDE of Germany confirmed recently that it was is in talks to combine with Praxair, a deal that could bring together two of the world’s largest providers of industrial-gas products.
The talks are “preliminary,” Linde said in an emailed statement. “These discussions are ongoing and have not resulted in any concrete results or agreements yet,” the company said. “Accordingly, it is currently not foreseeable whether there will be any kind of transaction.”
Praxair also confirmed in a separate statement that it has been in discussions with Linde, noting that “there can be no assurance that they will result in a transaction, or on what terms the transaction may occur.”
Linde’s statement came in response to a recent report by The Wall Street Journal that the two companies had been in merger talks. Linde surged about 9 percent on the stock market in Frankfurt, and Praxair gained about 5 percent days after, indicating that shareholders on both sides were applauding a potential deal.
Praxair, based in Danbury, Connecticut, has a market value of about $35 billion, while Munich-based Linde trades with a valuation of about €28 billion ($32 billion).
A combination of the two companies would create an industrial giant with more than $30 billion in annual revenue—the kind of scale that other companies in the sector have sought to become more competitive globally.
In May, Air Liquide, a French industrial-gas producer, acquired Airgas for more than $10 billion. Given the recent consolidation, any deal between Linde and Praxair could receive antitrust scrutiny.
If the discussions between the two were to continue “successfully,” Linde said it would inform the public.
Linde’s gas division focuses on industrial and medical gases. Praxair’s main products include oxygen, carbon dioxide and helium, and the company also manufactures equipment to produce industrial gases.
© 2016 The New York Times
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