Gas industry giants Linde and Praxair Inc. have inked a proposed merger agreement, which will create a combined company with estimated revenues of $30 billion and a market value in excess of $65 billion. The joint company intends to retain the Linde name.
"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,” Angel added.
The merged company aims to create significant value for shareholders through the realization of approximately $1 billion in annual synergies, driven by scale benefits, cost savings and efficiency improvements.
"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.
Praxair’s Angel will become CEO of the combined company, while Linde’s Supervisory Board Chairman Dr. Wolfgang Reitzle will be named chairman.
The parties expect to complete their internal approvals and execute the definitive business combination agreement in the coming months.