Gas giant Linde's merger with Praxair hits US hurdle

06 Aug, 2018

German industrial gases giant Linde has warned that its mega-merger with US-based Praxair has hit a major hurdle, with US competition regulators unexpectedly pushing it to offload more assets. The two firms' efforts to win approval for the merger could be subject to requirements "more onerous than previously expected," Linde said in a statement late Saturday.
The proposed tie-up would create the world's largest industrial gases firm with annual revenues of more than $30 billion (26 billion euros), overtaking Linde's longtime French rival Air Liquide. Antitrust authorities on both sides of the Atlantic are closely scrutinising the deal and Linde said the latest US demands could surpass a "threshold" agreed with Praxair - potentially derailing the deal.
"Linde was informed today that the US Federal Trade Commission expressed expectations with regards to further divestiture commitments and prospective purchasers which are considered required for a merger clearance," Linde said.
These demands "are likely to exceed a threshold for merger clearances previously agreed between Linde and Praxair", the statement added. According to Bloomberg News, both groups agreed in advance they could pull out of the merger if they were forced to offload units with more than 3.7 billion euros in annual revenues, or 1.1 billion euros in earnings before interest, depreciation and amortisation.

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