Linde and Praxair to win EU antitrust nod for $83 bln deal -sources

NIPPON SANSO HOLDINGS

12/07/2018 17:12

(Adds background, European Commission and Linde declined
comment)
    By Foo Yun Chee
    BRUSSELS, July 12 (Reuters) - Linde  LING.DE  and Praxair
 PX.N  will win approval regulatory clearance for their planned
$83 billion merger after pledging to sell Praxair's assets to
boost a Japanese rival in Europe, two people familiar with the
matter said on Thursday.
    German company Linde and U.S. rival Praxair announced their
merger plan in June last year, with the aim of ousting French
competitor Air Liquide  AIRP.PA  as global leader in gas
distribution, but the European Commission opened a full-scale
investigation in February.
    The Commission warned that the deal could reduce competition
in the supply of crucial gases such as oxygen, which has
multiple uses, and helium, which is essential for magnetic
resonance imaging (MRI) scanners.
    The EU competition enforcer also worried that high
investment costs could deter the entrance of new players in a
sector with only four major companies globally.
    But Praxair's offer this month to sell its European assets
to Taiyo Nippon Sanso Corp  4091.T  for 5 billion euros will be
sufficient to address the European Commission's concerns, the
two sources said.  urn:newsml:reuters.com:*:nL4N1U12JS
    The assets include Praxair's industrial gases businesses in
Belgium, Denmark, France, Germany, Ireland, Italy, the
Netherlands, Norway, Portugal, Spain, Sweden and Britain, and
include approximately 2,500 employees.
    Both the Commission, which is scheduled to rule on the deal
by Aug. 24, and Linde declined to comment.
    The companies are also planning to divest assets to a
consortium of German gases company Messer Group and funds
advised by CVC  CVC.UL  to secure regulatory clearance in the
United States and elsewhere.  urn:newsml:reuters.com:*:nL8N1U838R

 (Reporting by Foo Yun Chee
Additional reporting by Maria Sheahan in Frankfurt
Editing by David Goodman)
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