There is an expression ‘what goes around, comes around’ and that is very true related to the breaking news of a potential merger between Praxair, Inc. and The Linde Group. Here, gasworld Business Intelligence explores the history and potential future between the Tier One players.
The roots to this date back to World War I when the German company Linde AG were forced to exit the US gases market – having entered in the early 1990s. Following the War, Linde Air Products assets were confiscated and sold Union Carbide in 1919 – which included the rights to use the Linde name in the US. Since 1963, the industrial gases arm of Union Carbide was known as “the Linde division”. It was not until 1992, when Union Carbide decided to spin off the gases division, that Praxair was formed. It was only in 1998 that the Linde Group bought back the licence to use the Linde name again in the US.
However, the two companies have been serious competitors and this was first seen in 1999, when Praxair and BOC began merger talks – that quickly failed – but lead Praxair to move into merger talks with Swedish gases company, AGA. Worried that his company would be left behind in the growing global gases business – the CEO of Linde Group made a cash offer for AGA to counter the merger with Praxair – Linde came out top and in 2000, the deal was completed.
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