Taiyo Nippon Sanso Corporation (TNSC) has reached an agreement with Linde Gas North America LLC (Linde America) to acquire a portion of its HyCO business and related assets in the US through its wholly-owned subsidiary, Matheson Tri-Gas, Inc.
Through the $413,070,000 acquisition, Matheson will acquire the hydrogen (H2) and carbon monoxide (CO) Steam Methane Reforming (SMR) plants in five locations, pipelines and remote supervision systems.
HyCO represents hydrogen (H2) and carbon monoxide (CO) which are separated from natural gas and other gases through Stem Methane Reforming (SMR) and other equipment. The HyCO business provides large-scale supply of H2 and CO to customers in oil refining and petrochemical industries by way of a pipeline.
In its aim to expand in the gas technology field, TNSC has decided on a full-scale entry in the HyCO business for the perspective of strengthening its proposal capabilities with enchantments to its product line-up.
The new acquisition realises TNSC’s endeavour meaning a steady generation of earning from on-site supply of H2 and CO can be expected from the agreement, as well as the acquisition of resources which will further facilitate operation of HyCO business and the strengthening of the ability to offer proposals that will capture demand for new on-site projects in the US (for example petroleum refining and petrochemicals).
In June 2017, Linde Aktiengesellshaft (Linde AG) agreed to a merger with Praxair which was approved in October 2018 by the US Federal Trade Commission with the condition that some of Linde AG’s businesses including a portion of HyCO businesses in the US be transferred to a third party.
The merger resulted in Matheson concluding a contract with Linde America acquiring its HyCO business and its related assets at five locations in the US.