Taiyo Nippon, Carlyle frontrunners to buy Linde and Praxair assets -sources

NIPPON SANSO HOLDINGS

20/06/2018 08:53

(Adds details, background)
    By Harry Brumpton and Arno Schuetze
    NEW YORK/FRANKFURT, June 20 (Reuters) - Taiyo Nippon Sanso
Corp  4091.T  and private equity firm Carlyle Group  CG.N  have
emerged as frontrunners to buy assets that gases groups Linde
 LIN1.DE  and Praxair  PX.N  need to divest to seal their
planned merger, people close to the matter said.
    The bidders could finalise terms in the next few weeks on
the sale of two packages of assets worth about $8 billion in
total, the people added.
    Taiyo is in the frame to bag the European package, while
Carlyle would take the U.S. assets, they said.
    The two deals could clear the way to secure the $83 billion
all-share merger of equals that Munich-based Linde and Danbury,
Connecticut-based Praxair struck to create a global leader in
gas distribution, with revenues of almost $29 billion and 88,000
staff.
    Linde and Carlyle declined to comment, while Praxair and
Taiyo were not immediately available for comment.
    Linde and Praxair are pursuing talks to sell their European
business lines to Japan's Taiyo Nippon Sanso for about $4.4
billion and have chosen Carlyle for the divestiture in the
United States, potentially worth about $3.3 billion, the sources
said.
    They asked not to be identified as they were not authorized
to speak publicly.
    The sources added that both deals are not yet final and
could still fall apart. Those who were outbid have been given
the opportunity to improve their offers in case talks with
Carlyle and Taiyo collapse, two sources said.
    Price is not the only discussion point.
    As Reuters reported earlier this month, the sellers
specifically sought strategic buyers for Praxair's European
operations to help win approval by antitrust
regulators. urn:newsml:reuters.com:*:nL2N1TA12K
    The European Commission, which decides on antitrust
approval, typically prefers peer-to-peer mergers that create
more globally competitive businesses.
    A combined Linde and Praxair would have the size to overtake
France's Air Liquide  AIRP.PA  in the supply of gases such as
oxygen and helium to industries worldwide.

 (Additional reporting by Greg Roumeliotis, Ludwig Burger and
Taiga Uranaka
Editing by Douglas Busvine and Louise Heavens)
 ((arno.schuetze@thomsonreuters.com; +49.69.7565.1197; Reuters
Messaging: arno.schuetze.reuters.com@reuters.net))