Japanese industrial gas company Air Water Inc. (AWI) has acquired Praxair India Private Limited’s East Region Divestment Business through its subsidiary Air Water India Private Limited (AW India).
The business transfer agreement sees AW India acquire related business of manufacture, sale and distribution of oxygen, nitrogen and argon operated in East India (East Region Divestment Business).
Praxair, Inc. and Linde AG entered into a business combination agreement on 1st June 2017. The Indian Government’s competition authority, the Competition Commission of India (CCI), directed the companies to sell part of their Indian business to a third party.
“After deliberations on the acquisition, the Board decided on 4th March (2019) to submit a binding offer to acquire the East Region Divestment Business,” AWI explained in a press release.
“After negotiations on the terms and conditions of the acquisition, CCI granted its approval to Praxair India to divest the East Region Divestment Business to AWI on 31st May (2019).”
“AWI was selected as the ‘approved purchaser’ in terms of the order of the CCI for continuing the East Region Divestment Business, as a going concern and executed the agreement on 14th June (2019) with Praxair India.”
AWI said it had been focusing on expanding its overseas business in India. The company made inroads into the Indian market through the acquisition of Ellenbarrie Industrial Gases Ltd., a local industrial gas manufacturer, in 2013 and established AW India in 2014.
Speaking about the new acquisition, AWI said, “The demand for industrial gases is expected to grow along with the economic growth in India. The onsite gas supply business for the blast furnace steel manufacturing, in which we have extensive operating knowledge in Japan, will comprise great majority of this growth.
“We believe that this acquisition directly connects in establishing the upstream business from the point that we can obtain new liquid gas production and supply bases, and high strategic complementarity with Ellenbarrie’s downstream business from a medium to long term perspective, mainly operating in Eastern India, which should provide a great contribution to expanding our industrial gas business in India.”
The East Region Divestment Business will be acquired by AW India and AWI said it will provide the subsidiary with the necessary funds for the acquisition.