The proposed business combination between Praxair, Inc. and Linde AG has gained unconditional anti-trust clearance in Russia. This marks the first publicly official anti-trust approval for the Linde-Praxair merger.
Since 2012, Air Liquide has been the largest Tier One, by revenue, operating in Russia. However, according to estimates produced by gasworld Business Intelligence, the combination of Praxair and Linde will give the merged company a leading market share of approximately 18%.
Both Linde and Praxair made some large investments in the country over the past few years. In late 2016, Praxair commissioned a new ASU in Tolyatti, in the Samara region. The plant is operated as a joint venture with KuibyshevAzot. Also in 2016, Linde commissioned two ASUs located in Dzerzhinsk, the Nizhny Novgorod region. The €70m investment supports SIBUR’s ethylene oxide and glycols production.
The focus will now return to satisfying the other anti-trust authorities such as the Federal Trade Commission (FTC) in the US, and the European Commission, where we expect divestments that generated annual revenues (2016) in the region of $800m, and $500m, respectively.
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