Linde AG and Praxair, Inc. recently announced the companies have entered into a definitive business combination agreement (BCA) to come together under a new holding company through an all-stock merger of equals transaction. Linde and Praxair expect the transaction to close in the second half of 2018, subject to customary closing conditions, including regulatory approvals.
The proposed merger brings together two leading companies in the global industrial gas industry, leveraging the proven strengths of each. The transaction unites Linde’s long-standing leadership in engineering and technology with Praxair’s efficient operating model — creating a global leader.
The combined company will have a strong presence in all key geographies and end-markets, which will result in a more diverse and balanced global portfolio as well as increased exposure to long-term macro-economic growth trends. With a strong culture of innovation, sustainability and performance, the new company will enable the development and delivery of a broad range of products and solutions to customers and provide enhanced value for its employees, shareholders and communities.
“This combination is a compelling and transformative opportunity to create a world-class leader in the industrial gas industry,” said Steve Angel, chairman and CEO of Praxair, Inc. “The combined company will give us the opportunity to leverage the individual strengths of both companies across a much larger global footprint and enhance our ability to drive innovation and growth.”
Merger highlights:
- Combination leverages strengths of each company: Linde’s long-standing leadership in engineering and technology with Praxair’s operational excellence.
- Establishes strong, complementary positions in key geographies and end-markets, creates a more diverse and balanced end-market portfolio.
- Considerable value driven by approximately $1.2 billion (1.1 billion euros) in annual synergies and cost reductions.
- Combined pro forma revenues of approximately $29 billion (27 billion euros) in 2016 and combined current market value in excess of $70 billion (66 billion euros) as of May 31, 2017.
- All-stock transaction: 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.
- Governed by a Board of Directors with equal representation from Linde and Praxair.
- The combined company will be named Linde, retaining the globally-recognized brand and will be listed on both the New York Stock Exchange and Frankfurt Stock Exchange.
- Closing expected in the second half of 2018.
