On Thursday, March 1, Bloomberg reported that Linde and Praxair have started the sale of European and US industrial gas assets that may fetch about US$8 billion. The two companies are currently seeking regulatory approval for their combination.
The European and US assets currently on the block generated almost US$700 million in earnings in 2016, and are typically valued at 10 to 12 times that amount, the people said. The final valuation could change if more assets are added to appease antitrust regulators, the people said.
Linde and Praxair are trying to draw in more suitors, helping address antitrust regulators’ concerns about the number of major gas suppliers remaining following their US$52 billion merger. The clock is ticking for Linde and Praxair, which agreed to an October deadline for getting all the relevant approvals. The European Commission last month said a ruling would be issued by July 18.
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