After preliminary discussions of a merger between the two industrial gas juggernauts, Linde AG and Praxair, Inc. were terminated in September, the two seemed to have found better footing, recently announcing their intention to merge.
The merger will see German-based Linde and American-based Praxair combine under the Linde brand.
Based on 2015 reported results, the combined company with expected revenues of approximately USD$30 billion and a market value of over $65 billion.
“The strategic combination between Linde and Praxair would leverage the complementary strengths of each across a larger global footprint and create a more resilient portfolio with increased exposure to long-term macro growth trends," said current Praxair CEO, Steve Angel. “We consider this to be a true strategic merger, as it brings together the capabilities, talented people and best-in-class processes of both companies, creating a unique and compelling opportunity for all of our stakeholders.”
The combined company will be based out of Praxair’s current headquarters in Danburry, Connecticut. However, the company will be domiciled outside of Germany in a member state of the European Economic Area.
Corporate functions would be split between the Danbury base and Munich, Germany to help achieve efficiencies for the combined company, which will be helmed by Angel, who will take on the role of CEO after the merger.
A single Board of Directors will govern the combined company, with equal representation between Linde and Praxair.
As part of the agreement of the all-share merger, current Linde and Praxair shareholders would each own approximately 50 percent of the combined company, to be listed on both the New York Stock Exchange and Frankfurt Stock Exchange.
The combined company is hopeful for $1 billion in cost savings, through scale benefits and efficiency improvements, due to the merger, according to a joint statement.