German industrial gases group Linde and U.S. suitor Praxair have agreed an outline for a $65 billion-plus merger, with the combined company to be run out of the United States by Praxair's chief executive. David Pollard reports.
A pipe dream nearer to becoming a reality ... Praxair and Linde sealing the outline of a deal on a mega merger in the industrial gases sector. With a price tag of 65 billion dollars, it comes about after the two settled differences. Praxair reported to be offering new assurances to Linde over jobs and corporate governance. Like others in the sector, the two are struggling with lower demand. Air Liquide and Airgas have already tied a 13.4 billion dollar knot in their bid to beat it. The combined entity would be split 50/50 between existing Praxair and Linde shareholders - and be based in the US It would represent combined revenues of around 30 billion dollars based on 2015 figures. Ahead, it's said, would lie cost savings of around one billion dollars a year. Some see that as difficult to achieve. Especially if disposals - forced by regulators for anti-trust reasons - were to end up strengthening their rivals.