Linde AG, Munich, and Praxair Inc., Danbury, Conn., announce that the companies have entered into a definitive business combination agreement to come together under a new holding company called Linde, uniting Linde’s long-standing leadership in engineering and technology with Praxair’s efficient operating model.
The combined company will have a strong presence in all key geographies and end markets, which will result in a more diverse and balanced global portfolio, as well as increased exposure to long-term macro-economic growth trends. With a strong culture of innovation, sustainability, and performance, the new company will enable the development and delivery of a broad range of products and solutions, and will provide enhanced value for its employees, shareholders, and communities.,
Based on 2016 reported results, the combination will create a company with pro forma revenues of approximately $29 billion, prior to adjustments, potential divestitures, and regulatory limitations. Their combined current market value is in excess of $70 billion. Additionally, the new company will have a robust balance sheet and strong cash flow generation, enabling financial flexibility to invest in future growth.
The merged company is expected to create significant value for shareholders through the realization of approximately $1.2 billion in annual synergies and cost reduction programs that are expected to be achieved over a period of approximately three years following closing. These synergies and cost reductions are expected to arise from scale benefits, cost savings, and efficiency improvements from existing cost reduction programs.
