An industrial gas producer is merging with a global gas and engineering company based in Germany.
According to a news release, Connecticut-based Praxair Inc. has signed a non-binding term sheet with Linde AG to create a company with a current market value of over $65 billion. The merger is an all-stock transaction.
Praxair Inc. is building a facility in Greer following agreeing to a long-term contract to provide nitrogen to Toray Carbon Fibers America Inc., a subsidiary of Toray Industries Inc. Toray produces carbon fiber for Boeing and broke ground on a $1.4 billion plant in Moore in January 2016.
Under the proposed terms of the merger, Linde shareholders will receive 1.54 shares in the new holding company for each Linde share exchanged while Praxair Inc. shareholders will receive one share in the new company for every one Praxair share. The new company will have 50% ownership from Linde and 50% from Praxair.
“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,” said Steve Angel, chairman and CEO of Praxair Inc., in the release.
Angel will become CEO and member of the board of directors for the new company while Wolfgang Reitzle, supervisory board chairman for Linde, will become the chairman of the new board of directors. The new company will be listed on the New York Stock Exchange and Frankfurt Stock Exchange. Officials said the new company will “seek inclusion in the S&P 500 and DAX indices.”
Now, both companies will work toward a business combination agreement which is subject to due diligence, additional negotiation and board approvals.