Linde/Praxair take initial divest bids, sources say
06 APR 2018
Suitors submitted initial bids last week on a collection of assets Linde [ETR:LIN] and Praxair [NYSE:PX] are divesting to secure antitrust clearance, said several sources briefed on the matter.
The German and US industrial gas groups launched a divestiture process earlier this year to sell packages of assets in the Americas and Europe, as reported. The companies have so far provided limited financial information to suitors about the assets, some of the sources said.
German gas supplier Messer Group has partnered with private equity firm CVC Capital Partners to bid for the assets. Matheson Tri-Gas, backed by Taiyo Nippon Sanso [TYO:4091], is interested as well, according to media reports. A few private equity firms have also been taking a look at the assets, the sources said.
As of earlier this week, suitors had not heard back on who is advancing to the next stage of the auction, two of the sources said. Bidders have had the opportunity to bid on all or parts of the assets.
Antitrust authorities in multiple jurisdictions, including Brazil, China, European Union and the US, are reviewing the Linde and Praxair merger, which has an October 2018 long-stop date. The deal would create an industrial gas company with combined revenues of USD 29bn prior to divestitures, as of the merger’s announcement.
The companies have committed to divest assets worth up to EUR 3.7bn in revenue and EUR 1.1bn in EBITDA to close the transaction. Deutsche Bank, Credit Suisse and Goldman Sachs are coordinating the sale process, as reported.
Linde and Praxair declined to comment.
The German and US industrial gas groups launched a divestiture process earlier this year to sell packages of assets in the Americas and Europe, as reported. The companies have so far provided limited financial information to suitors about the assets, some of the sources said.
German gas supplier Messer Group has partnered with private equity firm CVC Capital Partners to bid for the assets. Matheson Tri-Gas, backed by Taiyo Nippon Sanso [TYO:4091], is interested as well, according to media reports. A few private equity firms have also been taking a look at the assets, the sources said.
As of earlier this week, suitors had not heard back on who is advancing to the next stage of the auction, two of the sources said. Bidders have had the opportunity to bid on all or parts of the assets.
Antitrust authorities in multiple jurisdictions, including Brazil, China, European Union and the US, are reviewing the Linde and Praxair merger, which has an October 2018 long-stop date. The deal would create an industrial gas company with combined revenues of USD 29bn prior to divestitures, as of the merger’s announcement.
The companies have committed to divest assets worth up to EUR 3.7bn in revenue and EUR 1.1bn in EBITDA to close the transaction. Deutsche Bank, Credit Suisse and Goldman Sachs are coordinating the sale process, as reported.
Linde and Praxair declined to comment.