EU: Investigation started for Linde-Praxair merger

The European Commission (EC) has opened an investigation into plans by Praxair Inc. and Germany’s Linde AG to join forces to create the market’s biggest player, over concerns that the deal could harm competition for gases, such as oxygen and helium.

The deal, announced in December 2016, would create the world’s largest industrial gas maker, with a combined market value of around US$85 billion.

The EC said on Friday, February 16, it was concerned the merger would reduce the suppliers of important gases in Europe to just three, and that other players lack the technical and financial capabilities to compete on equal footing.

“We will carefully assess whether the proposed merger between Praxair and Linde would lead to higher prices or less choice for European consumers and businesses,” said EC Commissioner Margrethe Vestager.

A Linde spokesman declined to comment on behalf of the companies.

The deal was expected to face global regulatory scrutiny, with divestitures an expected condition for approvals. The parties clinched approval from authorities in Russia and Pakistan but have yet to receive approval from regulators in the US, China and elsewhere.

Full Content: The Times Live

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.