On Friday 16 February, the European Commission opened an in-depth investigation into the planned merger between Praxair and Linde, out of concerns that it could reduce competition on the market for the supply of certain gases.
Praxair (United States) and Linde (Germany) are two of the four largest companies in the world operating on the market for the provision of industrial, medical and specialist gases, which are vital for certain activities. Although there are other companies present in the sector, they have neither the financial nor the technical resources to compete with these four multinationals and are only active at local, regional or national level.
The planned merger between the two companies would therefore reduce the number of major global players on the market for the supply of specialist gases to three. Additionally, given the amount of investment necessary to acquire a significant position on this market, it is by no means certain that competition could be reinforced in the future.
The Commission has concerns that the potential operation could bring about an increase in prices, for instance due to the weight of the merged entity, or the possible coordination between the three future players in the sector, regarding industrial, medical and specialist gases and helium.
The institution has therefore decided to conduct a more detailed investigation of this potential transaction and is expected to return its decision by 4 July of this year. (Original version in French by Lucas Tripoteau)