Gist’s parent company Linde has agreed a merger with US gases group Praxair to create a global giant with sales of some €27 billion a year.
The all-stock merger is expected to be completed in the second half of next year. The two organisations said the transaction would unite Linde’s leadership in engineering and technology with Praxair’s efficient operating model.
They expect to find synergies and cost savings of €1.1 billion annually. The new holding company will be incorporated in Ireland while its principal governance activities, including board meetings, will primarily be based in the United Kingdom. The group CEO will be based in Danbury, Connecticut, USA and group corporate functions will be appropriately split between Danbury, Connecticut and Munich, Germany to help achieve efficiencies for the combined group.
“This merger is a once-in-a-lifetime opportunity to form a great global industrial gas company poised to deliver value for customers, employees and shareholders alike. The new company is well positioned in all key markets and regions and can build on its exceptional R&D expertise,” said Linde chief executive Aldo Belloni.
News agency Reuters last year reported that Linde was in talks to sell Gist to HNA Group, the Chinese transport and leisure group.
In November of last year HNA acquired Ingram Micro. Adam Tan, HNA’s vice chairman and chief executive, said: “With its well-established supply chain management expertise and broad portfolio of easy-to-use technology solutions, Ingram Micro exemplifies HNA Group’s strategy of investing in companies with strong positions in growing markets in our core areas of focus.”