Praxair Inc and Linde AG , the industrial gas companies that agreed earlier this month to revive merger talks, are close to finalising the terms of the potential deal, people familiar with the matter have said.
The move comes after Danbury, Connecticut-based Praxair provided new assurances to Munich-based Linde over corporate governance and jobs, the sources said. Its previous bid to create a $65 billion (€62 billion) industrial gas giant failed in September amid disagreements over these issues.
A final term sheet may be finalised by the two companies by next Wednesday or Thursday, the sources said, cautioning it was always possible for last-minute disagreements to arise.
The sources asked for anonymity because the negotiations are confidential. Praxair and Linde offered no immediate comment.
Struggling
Linde and Praxair, alongside rivals Air Liquide SA and Air Products and Chemicals Inc, are struggling with slower economic growth that has weakened demand from the manufacturing, metals and energy industries and put pressure on smaller players, leading to further consolidation in the sector.
Earlier on Friday, Juergen Wechsler, head of the IG Metall union in Bavaria, said “powerful forces” within the company were now at work to ensure that a consensus was reached about a combination.
German unions IG BCE and IG Metall have struck a deal with Linde’s management to avoid forced redundancies in Germany before 2021, Buechele said.
– (Reuters)
