Linde and Praxair agree to merge to create global industrial gases leader
German chemical company Linde has agreed to merge with American company Praxair, a move that could create the world’s largest supplier of industrial gases.
Both companies have signed a definitive business combination agreement to this effect.
The combined company will be named Linde and have a market value of more than $70bn.
Linde CEO Aldo Belloni said: “This merger is a once-in-a-lifetime opportunity to form a great global industrial gas company poised to deliver value for customers, employees and shareholders alike. The new company is well-positioned in all key markets and regions and can build on its exceptional R&D expertise."
With operations in Ireland, the new company will have its corporate functions split between Danbury, Connecticut, and Munich, Germany, to help achieve efficiencies.
The combined company is expected to generate close to $1.2bn in annual synergies and cost reductions.
It will be governed by a 12-member board of directors with equal representation from Linde and Praxair.
Under the agreement, Linde shareholders will receive 1.54 shares in the new holding company for each Linde share and Praxair shareholders will receive one share in the new holding company for each Praxair share
The new Linde will be listed on both the New York Stock Exchange (NYSE) and the Frankfurt Stock Exchange.
Subject to customary closing conditions, including regulatory approvals, the deal is expected to be completed in 2018.