Munich-based Linde and Danbury-based Praxair have announced that the companies intend to combine in a merger of equals under a new holding company as they “have signed a non-binding term sheet and expect to execute a definitive Business Combination Agreement as soon as practicable.”
The combination would create a company with pro forma revenues of approximately $30 billion, prior to any divestitures, and a current market value in excess of $65 billion (EUR 61 billion), Linde said.
The proposed merger would bring together “two leading companies in the global industrial gas industry, leveraging the proven strengths of each while it would unite Linde's long-held leadership in technology with Praxair's efficient operating model, creating a global leader.”
According to Linde’s statement, the combined company would adopt the Linde name and be listed on both the New York Stock Exchange (NYSE) and the Frankfurt Stock Exchange; therefore it should operate under the EU and also US laws.
Linde has been selected as one of the main EPC contractors and also gas liquidation technology provider for Iran LNG project which was under construction in Tombak, south of Iran. The project includes two trains each with capacity of 5.4 MMT/Y of LNG.
Linde refused to supply needed equipment for Iran LNG in 2010 due to the US and also EU sanctions on Iran. However, following the recent world’s powers nuclear agreement with Iran, some of the EU sanctions annulled and it was reported that the German company is in negotiate with Iran to revive its contract with Iran LNG after receiving the green light from German credit insurance, Euler Hermes.
Last year, Linde CEO Wolfgang Buchele had said that his company will “definitely” transfer technology to Iran to carry out petrochemical projects once sanctions are lifted on the country.
However, recent extension of the ILSA sanctions act, prevents US companies from any involvement in the Iranian energy sector projects and would ban further Linde- Praxair merged company's business with Iran LNG project.

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