Global gas companies Linde AG and Praxair Inc have announced that the companies intend to combine in a merger of equals under a new holding company through an all-stock transaction. Based on 2015 reported results, the combination would create a company with pro forma revenues of approximately $30 billion (€28 billion), prior to any divestitures, and a current market value in excess of $65 billion (€61 billion).

The strategic combination between Linde and Praxair would leverage the complementary strengths of each across a larger global footprint and create a more resilient portfolio with increased exposure to long-term macro growth trends,’ said Steve Angel, Praxair's chairman and CEO. ‘We consider this to be a true strategic merger, as it brings together the capabilities, talented people and best-in-class processes of both companies, creating a unique and compelling opportunity for all of our stakeholders.’

‘Under the Linde brand, we want to combine our companies' business and technology capabilities and form a global industrial gas leader. Beyond the strategic fit, the compelling, value-creating combination would achieve a robust balance sheet and cash flow and generate financial flexibility to invest in our future,’ said professor Dr Aldo Belloni, CEO of Linde.

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.