News from the air separation industry, 20161201: Industrial gas giants Praxair and Linde plan to resume merger talks

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It’s still necessary to band together for mutual support and form strong alliances. The industrial gas giants Praxair and Linde plan to resume merger talks. On November 29, according to foreign media reports, Praxair, the American industrial gas giant, has once again approached Linde of Germany regarding a merger; such a deal could result in the creation of an industrial gas giant with a value of $60 billion. 　　The Wall Street Journal reported that, according to people familiar with the matter, Praxair contacted Linde again last week, and negotiations could resume soon. A person familiar with the matter warned that Linde might also refuse to engage in further negotiations, and there is no guarantee that a deal will be reached. 　　Both companies confirmed this in their respective statements. Linde said the company has received a revised offer from Praxair regarding a potential reciprocal merger. The company also said that its executive board is evaluating this offer. 　　The latest round of negotiations calls for a 50/50 split in ownership, with Steve Angel, President and CEO of Praxair, to serve as the leader of the merged entity; the headquarters of this merged entity will be located at Praxair’s headquarters in Danbury, Connecticut. Wolfgang Reitzle, chairman of the Linde supervisory board, is expected to serve as the chairman of the merged company. 　　Affected by this news, Plex’s stock price rose by as much as 5%, giving the company a market value of around $35 billion. Linde’s shares are suspended from trading on the German stock market, with a market value of around $30 billion. On August 16 of this year, Germany’s Linde Group and the U.S.-based Praxair confirmed that they are engaged in active negotiations regarding a merger. On September 12, both parties stated that they had ended discussions on a potential merger due to failure to reach an agreement on central management issues.