Linde AG (Linde) and Praxair, Inc. (Praxair) have announced that the companies intend to combine in a merger of equals under a new holding company through an all-stock transaction. The companies have signed a non-binding term sheet and expect to execute a definitive Business Combination Agreement as soon as practicable. Based on 2015 reported results, the combination would create a company with pro forma revenues of approximately US$30 billion (€28 billion), prior to any divestitures, and a current market value in excess of US$65 billion (€61 billion).
The proposed merger would bring together two leading companies in the global industrial gas industry, leveraging the proven strengths of each. The transaction would unite Linde’s long held leadership in technology with Praxair’s efficient operating model, creating a global leader. The combined company would enjoy strong positions in all key geographies and end markets and create a more diverse and balanced global portfolio. Additionally, it would enable the development and delivery of more innovative products and services to customers.
“The strategic combination between Linde and Praxair would leverage the complementary strengths of each across a larger global footprint and create a more resilient portfolio with increased exposure to long term macro growth trends," said Steve Angel, Praxair’s Chairman and CEO. “We consider this to be a true strategic merger, as it brings together the capabilities, talented people and best in class processes of both companies, creating a unique and compelling opportunity for all of our stakeholders."
“Under the Linde brand, we want to combine our companies’ business and technology capabilities and form a global industrial gas leader. Beyond the strategic fit, the compelling, value creating combination would achieve a robust balance sheet and cash flow and generate financial flexibility to invest in our future,” said Professor Dr. Aldo Belloni, CEO of Linde.
Under the proposed terms of the transaction, Linde shareholders would receive 1.540 shares in the new holding company for each Linde share exchanged in the German offer, and Praxair shareholders would receive one share in the new holding company for each Praxair share. As a result, current Linde and Praxair shareholders would each own approximately 50% of the combined company, assuming a 100% share exchange in the German offer.
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/21122016/linde-and-praxair-intend-to-merge/