Linde claims that this will combine its leadership in technology with Praxair’s operational excellence, and bring together complementary positions in key geographies. The company also claims that the merger will lead to combined pro forma revenues of approximately US$30 billion and current market value in excess of US$65 billion. The transaction is expected to create considerable value, leading to approximately USS$1 billion in annual synergies. A non-binding term sheet has been signed by both parties, and it is expected that a definitive business combination agreement will be executed as soon as practicable.
The newly created company would be governed by a single board of directors, with equal representation from both parties. Linde shareholders would receive 1.540 shares in a new holding company for each Linde share. Praxair shareholders would receive one share in the new holding company for each Praxair share, meaning that Linde and Praxair shareholders would each own approximately 50% of the new holding company.
The Chairman and CEO of Praxair, Steve Angel, said: “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.
“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.”
The CEO of Linde, Dr Aldo Belloni, added: “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.”
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/21122016/linde-and-praxair-announce-intention-to-merge/