Linde Says Regulators Likely To Demand More Divestitures In Praxair Deal

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Linde Says Regulators Likely To Demand More Divestitures In Praxair Deal

BERLIN – German industrial gases group Linde (LIN1.DE) said it and U.S. rival Praxair (PX.N) may need to sell more assets than anticipated to secure antitrust approval for their planned $87 billion tie-up, which could scupper the deal.

The planned combination in an all-shares merger, agreed in principle in December 2016, would create a global leader in gas distribution ahead of France’s Air Liquide (AIRP.PA).

But the companies agreed at the time that if regulators demanded the disposal of businesses with more than $3.7 billion in sales or $1.1 billion in earnings before interest, taxes, depreciation and amortization (EBITDA), either party could withdraw without penalty.

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