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Brussels has been skeptical about their merger so far because the market power of both companies in Europe could become too important for certain gases such as oxygen and helium. EU Competition Commissioner Margrethe Vestager had therefore launched an in-depth review of the project in February
Linde is also expected to cede its activities to other regions, Linde said. In addition, Linde and Praxair are in talks with the authorities and are also negotiating with potential bidders. Investors have seen this as a good sign of success: Linde shares rose 3.5% Thursday morning as one of the leaders of the Dax.
The proposed merger is the second, after a first in September 2016 failed in the choice of the company's headquarters and the structure of a united company. The parts of Praxair that are now scheduled to be delivered to Europe generated a turnover of about 1.3 billion euros last year. Linde and Praxair have reserved the right not to sell sales of more than 3.7 billion euros or 1.1 billion euros in operating income (EBITDA). Otherwise, they could back down if larger sales are needed.
The entire market is expected to be completed by the end of the year. Since the shareholders have already agreed, the merger can not fail due to excessive conditions or the antitrust veto. The decision of the European Commission expected for August is the biggest obstacle. If all antitrust approvals are not available by October 24th, the planned merger since last year will be canceled. The deadline for review of the European Commission is 24 August.
The two companies want to merge to become the largest industrial gas producer in the world. With 80,000 employees and an annual turnover of 28 billion euros, they would control a quarter of the global market. The new Linde plc will be led by Praxair CEO Steve Angel of the United States. IG Metall fears the loss of jobs and participation rights. / Zb / men / stw / jha / nas
(AWP)
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