Gas Circle August 20, according to the Finacial Times, the European Commission today plans to release the merger request of German chemical giant Linde and its rival US Praxair, which for the two companies and mergers, this is A landmark event, although in the United States, the future of the merger is still unclear.
Margrethe Vestager, an official of the European Commission's competition management competition, agreed to end the proposal, but only if the completion of Praxair's $5 billion in assets sold to Dayangri. Before she worried that the merger could lead to an increase in gas prices and reduce customer choices.
The tricky issue is the US Trade Commission. In July, the company announced that it would sell its $3 billion in North American assets to Messer and CVC in exchange for approval by the US Federal Trade Commission. However, on August 6, the representative of Linde said that the US government hopes to sell more assets than before. The current anti-monopoly requirements are likely to exceed the bottom line of the previously terminated transaction. The company and the US Federal Trade Commission did not reach an agreement. And the transaction must be closed on October 24th, which is a regulation of German listed companies.
There may also be more difficult situations in China than originally thought. According to foreign media forecasts, the merger of Praxair and Linde, including the joint ventures of the two companies, is unlikely to cause any antitrust problems at the Chinese national level in terms of market share. However, the main problems that may arise in the Chinese market exist at a more regional level, and there may be overlapping areas of production and local monopolies. Linde confirmed that they are still waiting for China's approval.
Wolfgang Reitzle, chairman of the Linde Supervisory Board, was pushing the deal very hard, and he almost put his fame on it to complete the deal. The proposed merger failure in 2016 was mainly due to the German workers’ opposition to the transaction, but after the departure of Linde’s finance director, the merger negotiations began to resume, and the new transaction was beneficial to German workers, but there were still some opposition voices. The sound comes from the union. Both companies declined to comment on the matter.