Gas companies Linde AG and Praxair Inc have confirmed that the companies will 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.

The companies say that the value of the merger is driven by approximately US$1.2 billion (€1.1 billion) in annual synergies and cost reductions with combined pro forma revenues of approximately US$29 billion (€27 billion) in 2016 and combined current market value in excess of US$70 billion (€66 billion) as of 31 May 2017.

‘This combination is a compelling and transformative opportunity to create a world-class leader in the industrial gas industry,’ said Steve Angel, chairman and CEO of Praxair, Inc. ‘The combined company will give us the opportunity to leverage the individual strengths of both companies across a much larger global footprint and enhance our ability to drive innovation and growth.’

‘This merger is a once-in-a-lifetime opportunity to form a great global industrial gas company poised to deliver value for customers, employees and shareholders alike,’ said Aldo Belloni, CEO of Linde AG. ‘The new company is well positioned in all key markets and regions and can build on its exceptional R&D expertise.’

This story is reprinted from material from Linde and Praxair, with editorial changes made by Materials Today. The views expressed in this article do not necessarily represent those of Elsevier.