DANBURY, Conn. – Danbury-based industrial gas company Praxair, Inc and the German company Linde AG announced Thursday that they have officially entered into an agreement to join together to form one company.
The companies expect the merger to close in the second half of 2018, subject to customary closing conditions and regulatory approvals. The two companies said that merging brings together leaders in the global industrial gas industry, combining Linde's engineering and technology with Praxair's operating model.
“This combination is a compelling and transformative opportunity to create a world-class leader in the industrial gas industry,” said Steve Angel, Chairman and CEO of Praxair, Inc. “The combined company will give us the opportunity to leverage the individual strengths of both companies across a much larger global footprint and enhance our ability to drive innovation and growth.”
Under the agreement, the combination will create a company with combined revenues of around $29 billion and a market value in excess of $70 billion. The merger is also expected to create value for shareholders and lead to synergies and cost reductions.
“This merger is a once-in-a-lifetime opportunity to form a great global industrial gas company poised to deliver value for customers, employees and shareholders alike. The new company is well positioned in all key markets and regions and can build on its exceptional R&D expertise,” said Aldo Belloni, CEO of Linde AG.
The new holdings company will be incorporated in Ireland while its principal governance activities, including board meetings, will be primarily based in the United Kingdom. The group CEO will be based in Danbury, while group corporate functions will be split between Danbury and Munich, Germany.