Sector News

Linde completes required US divestitures, begins Praxair-Linde integration

March 4, 2019
Energy & Chemical Value Chain

Linde plc says it is now able to fully integrate its business globally following the divestiture of assets required by the US Federal Trade Commission (FTC). Linde and Praxair closed their merger 31 October 2018 and the combined company will operate as Linde. Linde was required to hold and operate the US assets at issue separately until required divestitures were completed.

The combined company, excluding completed and pending divestitures, posted adjusted 2018 sales of $28.1 billion and net income of $3.4 billion, year-on-year gains of 5% and 8% respectively, according to a 1 March investor presentation. The deal creates the largest global industrial gases player, taking the lead from Air Liquide, which posted 2018 revenue of $24 billion.

The company says it expects “slower top-line growth” in 2019 due to lower global industrial production and negative currency impacts, which will be offset by positive pricing and project backlog. The company forecast 2019 earnings per share growth of 8–12% due to positive contribution from cost savings, improved capital structure, and a lower share count. The company says it expects margin improvement through the year.

In July 2018, Linde reached agreement to sell most of its industrial gas business in North America and some assets in South America to a consortium that included Messer Group and CVC Capital Partners. In 2017, those businesses generated annual sales of €1.5 billion and EBITDA of €350 million. The purchase price was €3.0 billion. Linde also agreed to certain other US assets, including five hydrogen plants to Taiyo Nippon Sanso’s Matheson unit. The FTC approved the sales to Messer/CVC and Matheson on 26 February.

Praxair reached a separate deal to sell a majority of its European assets to Taiyo Nippon Sanso.

By Robert Westervelt

Source: Chemical Week

comments closed

Related News

May 26, 2024

Borealis signs first Austrian wind and solar PPA with Burgenland Energie

Energy & Chemical Value Chain

Borealis has partnered with Austria-based wind and solar power producer and green tech solution provider Burgenland Energie on a power purchase agreement (PPA). Under the ten-year agreement, renewable electricity will be provided by a hybrid renewable energy park located in Nickelsdorf, Austria, which is owned by Burgenland Energie’s subsidiaries Nick Alpha and Wind PV Operation.

May 26, 2024

DuPont to split into three companies

Energy & Chemical Value Chain

DuPont de Nemours Inc. announced plans to split into three separate, publicly traded companies. The electronic materials and water business will become independent companies, with the remainder of the company to comprise New DuPont. The splits will be complete within 18 to 24 months, and do not require shareholder approval.

May 26, 2024

Olin hires new leader for chlor-alkali and vinyls business

Energy & Chemical Value Chain

Olin Corp. has hired Deon Carter as vice president and president/chlor-alkali products and vinyls, effective June 17. Carter was previously COO at Continental Industries Group, a position he took April 2023 after serving as president and CEO of Scientific Design Company.

How can we help you?

We're easy to reach