Mergers

The merger of Linde and Praxair fails

From the new world market leader in industrial gases, nothing will. The German Platzhirsch Linde can’t agree with the Americans of Praxair in a number of important questions.

Barely started and already into thin air: The gases manufacturer Linde and the US company Praxair have abandoned their merger talks. A good four weeks ago, both companies announced to consider a merger. Not quite of the same opinion, the chief were days, especially in the case of the election of the registered office, and the structure of the merged company, according to the latest reports from the talks in the past few weeks. In questions of detail it had come to an agreement, it said on Monday officially.

Linde shares fell to trade a prelude to a good eight percent. Investors were disappointed. After the announcement in mid-August, the papers were sharply increased.

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The plans were met in the financial world, to much approval. A analysts had to go as a strategically located. In the case of Linde, it was also the sense of a Fusion was confirmed in the interviews. However, we have been able to achieve, especially on the subject of Governance (corporate governance) no Match.

Air remains liquid at the top

Linde is, especially in Europe and Asia, Praxair in North and South America. The Munich-based suffer from the weakness of the Oil and gas industry and had therefore strengthened in the medical gases business. In the health sector, the Americans are not represented so far.

The transaction would have worked, would have created a new world market leader for industrial gases. Linde had had to cede its global top spot at the French rival Air Liquide, after the latter had swallowed this year the American company Airgas. Praxair was the last one on a turnover of 10.8 billion US dollars (9.6 billion euros). Linde achieved in 2015, around 18 billion euros in sales. As measured by the market value of Praxair with 33.7 billion dollars, however, had the nose in front. The Munich-came – before the talks are to 25.9 billion euros (about 29 billion dollars).

ul/hb (dpa, rtr, afp)