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10/22/2018, 6:33 PM (Source: TeleTrader)
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Linde: Merger brings up to $1.2B over three years

The merger of equals with Praxair Inc. is expected to be executed on October 31, creating a company with market capitalization of $90 billion, Linde AG said on Monday after winning a conditional approval from the United States Federal Trade Commission and the buyer approval for the sale of the former's assets in Europe to Taiyo Nippon Sanso Corp. In the transformation, existing shareholders are entitled to 1.54 shares in Linde Plc for each one tendered, while the new stocks will be equivalent to Praxair's, the announcement revealed. Annual synergies and cost efficiencies are planned to reach $1.1 billion to $1.2 billion within three years, said the German industrial gases giant.

The tendered shares of Linde AG should be pulled from Frankfurt trading at the closing bell on October 26, for Linde Plc to resume with ticker LIN on October 29 and on the New York Stock Exchange on October 31. The company said it aims to be included in the S&P 500 and DAX 30 indexes. The untendered stock is planned to be changed to LNA and continue to be listed.

Linde said the FTC ordered the two entities to operate separately until the divestment of "substantially all" of the bulk business in the United States as well as the sale of some units for carbon monoxide, hydrogen and steam methane reforming. The deadline is January 29.

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