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.