1 June 2017
DETAILS
Merger Highlights
- Combination leverages unique strengths of each company:
Linde’s long-standing leadership in engineering and technology
with Praxair’s operational excellence - Establishes strong, complementary positions
in key geographies and end-markets,
creates a more diverse and balanced end-market portfolio - Considerable value driven by approximately USD 1.2 billion
(EUR 1.1 billion) in annual synergies and cost reductions - Combined pro forma revenues
of approximately USD 29 billion (EUR 27 billion) in 2016
and combined current market value
in excess of USD 70 billion (EUR 66 billion) as of May 31, 2017 - All-stock transaction:
Linde shareholders will receive 1.54 shares in the new holding company
for each Linde share and
Praxair shareholders will receive one share in the new holding company
for each Praxair share - Governed by a Board of Directors
with equal representation from Linde and Praxair - The combined company will be named Linde,
retaining the globally-recognized brand
and will be listed on both
the New York Stock Exchange and Frankfurt Stock Exchange - Closing expected in the second half of 2018
Linde AG (Xetra: LIN) and Praxair, Inc. (NYSE: PX)
today announced that the companies
have entered into
a definitive business combination agreement (BCA)
to come together under a new holding company
through an all-stock merger of equals transaction.
Linde and Praxair expect the transaction
to close in the second half of 2018,
subject to customary closing conditions,
including regulatory approvals
Value Creation
Based on 2016 reported results, the combination
will create a company with
pro forma revenues of approximately USD 29 billion
(EUR 27 billion), prior to adjustments,
potential divestitures and regulatory limitations,
and a combined current market value
in excess of USD 70 billion (EUR 66 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 USD 1.2 billion (EUR 1.1 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.
VIEW LINDEPRAXAIRMERGER FULL PRESENTATION
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