By Rhea Healy2017-05-24T20:03:00+01:00
Praxair, Inc. and Linde AG have moved one step closer towards completing a merger of equals after signing an agreement in principle on the terms and conditions of a Business Combination Agreement (BCA).
The transaction, if successful, would create a new holding company through an all-stock transaction, consistent with the transaction structure that the companies announced on 20th December 2016.
The agreement in principle is still subject to Board approvals of both parties.
If such approvals are obtained and the BCA is executed, the transaction will be subject to additional conditions that will be disclosed in regulatory filings with the Securities and Exchange Commission and the German Federal Financial Supervisory Authority.
A press release cautioned that there is still ‘no assurance’ that such Board approvals will be obtained, that the BCA will be executed or that the transaction will be ‘consummated.’
gas world Business Intelligence estimated that the newly combined corporation would hold a global market share of approximately 33%, pre-divestment.
The potential Praxair-Linde merger may not affect the Asian market on the same scale as in European and North American markets. However, there are a few regions where anti-trust authorities could impose divestments onto the newly combined company.
It’s on: Board approvals and conclusion have been reached in a definitive Business Combination Agreement for the mega merger of equals between Praxair, Inc. and The Linde Group, with only antitrust approval and legal due diligence standing between the deal and a 2018 completion.
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