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2/16/2018, 1:51 PM (Source: TeleTrader)
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EU Commission to look into Linde, Praxair deal

The European Commission announced on Friday that it opened an in-depth investigation to assess the proposed merger between Linde AG and Praxair Inc. The agency expressed concerns the deal may reduce competition and increase prices due to the market power of the merged entity. It has 90 working days, until July 4, to take a decision.

The report states that the two parties are two of the four largest companies active worldwide across the whole supply chains of industrial gases, such as oxygen and helium, used for medical purposes, among others. "The transaction would reduce the number of major players active worldwide and in Europe for the supply of these and many other gases to just three. Other players in the market only have regional, national or local presence and lack the technical and financial capabilities to compete on an equal footing. In addition, there is no indication that competition could be fostered by new entrants, due to the very high investment necessary to establish a meaningful position in the market," the Commission said.

Breaking the News / DJ