MUNICH (dpa-AFX) - German industrial gas company Linde AG (LDE.L, LNAGF.PK) said Tuesday that discussions with various antitrust authorities have resulted in indications that merger clearance of the business combination of Linde and Praxair, Inc. will be subject to requirements more onerous than previously assumed.
Based on ongoing discussions and the current knowledge, the revenue and EBITDA thresholds agreed with Praxair in the Business Combination Agreement up to which divestment commitments must be accepted are not exceeded, Linde said.
Linde said the company and Praxair will not submit final commitments to the European Commission in this first investigation phase. Therefore, the merger partners expect that the European Commission will initiate an in-depth investigation.
When initiating a phase II investigation, the European Commission, in principle, decides within a period of 90 business days on the approval of the business combination. A phase II investigation is not uncommon for complex transactions, such as the one at hand.
The merger partners remain convinced of the merits of the proposed business combination. Linde and Praxair will continue the constructive dialogue with antitrust authorities in order to complete the transaction in the second half of 2018.
Copyright RTT News/dpa-AFX