When delving into the world of mergers and acqusitions (M&A) as applied to the industrial gases industry, it’s worth first understanding the huge capital cost and dynamics that comprise the industry itself.
The major players in this strategically important industry share a few characteristics that have shaped their history and form the basis for the values and strengths that have sustained their growth. Air separation technology is the very core of the business and success requires expertise in design, construction, optimisation, maintenance and operation.
Competitive advantage in any given market belongs to the producer of the lowest cost product but in this business, warehousing of bulk inventory is not an option. Plant operations and distribution flexibility are the tools used to balance supply and demand, while customer demand patterns can fluctuate wildly.
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