Following an in-depth investigation, the European Commission on Monday 20 August authorised the planned merger between the American company Praxair and Linde of Germany, two of the world's four largest suppliers of speciality gases, through Air Liquide and Air Products (see EUROPE 11963).
As initially structured, the transaction would have considerably reduced competition on several markets of the European Economic Area (EEA), the European institution explained in a press release.
Only very large suppliers have the engineering capacity required to bid for the largest projects (construction of complex gas production units) and to access the few sources of helium in the world. It is also difficult for newcomers to enter the market, due to the very large investments required to occupy a significant position in this market.
In order to deal with the concerns expressed, Praxair and Linde have offered the following commitments, with a view in particular to removing the overlap between the two companies' activities in the EEA: - selling all of Praxair's gas activities in the EEA to an appropriate buyer; - transferring Praxair's shares in SIAD, an Italian joint venture active in Central and Eastern Europe and Italy, to Flow Fin, Praxair's other partner in the joint venture; - divesting additional helium supply contracts, beyond those necessary to respond to demand in the EEA, to one or more appropriate buyers. (Original version in French by Mathieu Bion)