Finalizing a merger with Praxair is likely to take “several months”, the chief executive of Linde said in a letter to a shareholder association, reiterating he saw no need to ask shareholders to vote on the $65 billion deal.
German industrial gases group Linde and U.S. rival Praxair announced in December their intention to merge to create a global leader, saying at the time they expected to execute a definitive business combination agreement “as soon as possible” in the coming months.
In a letter to German retail-shareholder association DSW filed with the U.S. Securities and Exchange Commission, Linde CEO Aldo Belloni rejected criticism he was not informing shareholders sufficiently about the progress of discussions with Praxair.
He also defended his decision not to call a shareholder meeting to approve the deal.
“I am sure you will understand that developing, negotiating and documenting the details of such a complex merger naturally takes time,” he wrote in the letter dated March 7.
“Speaking from experience with other (often less complicated) mergers, we foresee the whole process taking several months.”
Linde is expected to give an update on its negotiations with Praxair at its full-year results on Thursday.
A source close to the deal said this week the detailed so-called business combination agreement would not be signed this month, due to delays caused by German unions, who fear their influence in a combined company will be diminished.
By Georgina Prodhan and Arno Schuetze
Source: Reuters
3M and Dow have announced they are cutting thousands of roles from their global workforces in response to economic pressures. Dow has said it will cut 2,000 jobs across its global workforce (around 5%) in a bid to save US$1bn in 2023. The company says it will also cut costs by shutting down “select assets”, though it did not note where it would halt operations.
Sweden’s state mining firm has discovered what could be Europe’s largest rare earths deposit, and says it could help the bloc reduce its reliance on imports of minerals needed to manufacture clean technologies and meet climate targets.
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