Praxair moves to re-open talks over $60bn Linde deal
US gas company Praxair has moved to re-open talks about a $60bn combination with German rival Linde, just over two months after a previous round of discussions between the companies collapsed in dramatic fashion and led to the dismissal of Linde’s chief financial officer.
Last week, Praxair contacted senior Linde representatives about their interest in reviving talks, according to people close to the matter. Linde has yet to respond to the US company’s message, one of these people added. A deal would create the world’s largest supplier of industrial gas, although it would likely face close regulatory scrutiny, especially given the recent wave of consolidation within the industrials and chemicals industries over the past two years.
The approach comes at a difficult time for Linde, which has been dealing with the fallout from the failed talks and has in recent weeks launched a large restructuring of its business.
Linde’s 12-member supervisory board dismissed Georg Denoke, its long-serving finance director, one day after talks with Praxair collapsed.
The Financial Times reported in September that Mr Denoke was dismissed for opposing a combination with Praxair against the efforts of Wolfgang Reitzle, chairman of Linde’s supervisory board, plus chief executive Wolfgang Büchele.
At the same time Dr Büchele, who first brought the idea of a deal with Praxair to Mr Reitzle, told the Linde board he would not seek a second term as chief executive when his contract ends next April.
Linde, which has a market value of about $29bn, declined to comment. Praxair did not immediately respond to a request for comment. Shares in Praxair rose 2.5 per cent in late US trading after the Wall Street Journal reported that it had approached Linde. The US company is worth about $34.6bn.
Update: Linde released a statement on Tuesday confirming it had received a revised offer from Praxair:
Linde AG (“Linde”) has received a revised proposal from the US based company Praxair, Inc. (“Praxair”) concerning a potential merger of equals. The Executive Board of Linde is reviewing the proposal.