Praxair Inc. to Acquire Linde AG

Praxair, Inc. (NYSE: PX), an industrial gas supplier, has announced the acquisition of Linde AG, in a deal valued at about 33.9 billion ($35.1 billion). The buyout will result in the creation of the world’s largest supplier of industrial gases.
 
A major agreement point is that the new combined company will have its headquarters in Munich, Germany, Linde’s base of operations. Linde guaranteed no forced layoffs until 2022. The new merged company will have Linde’s name and the stock will listed in New York and Frankfurt.  
 
“Corporate functions would be appropriately split between Danbury, Connecticut and Munich, Germany to help achieve efficiencies for the combined company,” Munich-based Linde and Praxair said in their statement.
 
As for the company’s valuations, the combined pro forma revenues of approximately $30 billion (EUR 28 billion) and current market value in excess of $65 billion (EUR 61 billion). The transaction expected to create considerable value, resulting in approximately $1 billion (EUR 0.9 billion) in annual synergies. Linde shareholders would receive 1.540 shares in a new holding company for each Linde share and Praxair shareholders would receive one share in the new holding company for each Praxair share, resulting in Linde and Praxair shareholders each owning approximately 50% of the new holding company.

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