After previous negotiations failed in September, the merger was confirmed on the 20 December and Praxair agreed to buy Linde for $35 billion. The newly merged company will be the biggest industrial gas giant with a market value of over $65 billion. In this “merger of equals”, Linde’s technology expertise and Praxair’s top reputation for efficiency would be united. Additionally, annual costs are expected to be cut by $1 billion as a result of the merger, which is key at a time when Chinese growth is slowing and demand is reduced for oil and gas. On the regulation side, antitrust watchdogs will keep a sharp eye on the deal.  Praxair and Linde have reportedly considered possible divestitures to solve any antitrust issues, potentially including the sale of gas-production operations in local markets.

Firms advise 

Cravath’s European M&A head Richard Hall headed the deal for Linde with partners Aaron Gruber in M&A and Len Teti in tax. Linklaters’ partner Thomas McGrath and Brussels head Bernd Meyring are advising Linde on antitrust and regulatory matters in addition to Hengeler Mueller’s corporate partner Maximilian Schiessl. Sullivan & Cromwell’s corporate partners Keith Pagnani and Krishna Veeraraghavan are advising Praxair along with partner Carsten Berrar.

Sources: Legal Business; Bloomberg