Welding product manufacturer Lincoln Electric Holdings, Inc. has entered into exclusive negotiations to acquire Air Liquide’s welding business.

In the proposition, the US-based company has signed a memorandum of understanding (MoU) with the Tier One player to acquire Air Liquide Welding.

The proposed acquisition is subject to a definitive agreement between the parties and customary conditions and provisions.

A media release cautioned that there can be no assurance that a definitive agreement will be entered into, or that a transaction will be consummated, as the parties have not yet reached a conclusive arrangement.

Air Liquide Welding is a key player in the manufacturing of welding and cutting technologies and generated a turnover of around €350m ($368m) in 2016. The move, if successful, would complement Lincoln Electric’s leading position in the welding product manufacturing sector.

Air Liquide first announced that it was considering various options to divest its welding business subsidiary in December 2016, due to an increased focus on its Gas & Services activities.

Financial details have remained undisclosed at this stage.