The Competition Commission of India (CCI) has approved the proposed mega merger of equals between Praxair and Linde, subject to certain conditions.

“CCI_India approves combination of Linde and Praxair, subject to compliance of certain modifications,” the fair trade regulator said in a tweet on Friday.

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The CCI received a notice filed by Linde Aktiengesellschaft and Praxair on 11th January (2018) in relation to their $70bn merger under a newly incorporated holding company Linde Plc.

Linde Plc is a public limited company formed on 18th April (2017) that will become the parent company of Praxair, Inc. and Linde AG upon the completion of the business combination. Linde Plc will be owned by the two companies’ current shareholders.

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Completion of the business combination remains subject to timely approval by requisite governmental regulators and authorities under applicable competition laws.

According to other reports, the merger faced particular scrutiny In India due to fears over the effects of the deal in the market’s competitive landscape. A public scrutiny was launched in May by the CCI.

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gasworld’s Senior Business Analyst, Jonny Dearden, said, “Linde and Praxair are currently the two dominant players in the Indian market, holding a combined market share of above 40%.”

“Both companies hold supply scheme contracts with large Indian steel companies. Linde has been supplying Tata Steel in Kalinganagar since 2016 and Praxair has supplied JSW steel in Maharashtra with gaseous nitrogen since 2015. With steel production contributing almost 2% to the country’s GDP both companies will feel confident of future demand growth.”

“Post-merger they look set to continue to solidify their position as the driving force in India’s industrial gases market.”

Praxair and Linde continue to aim for completion of their merger in the second half of 2018. The companies are working toward a deadline of 24th October (2018), as dictated by German financial market rules.

At the time of writing, the transaction has now been given clearance in 18 countries/regions, with final approval in six countries/regions (US, South Korea, China, Brazil, Chile and Argentina) still pending. There is no closing condition attached to Chile and Argentina.