Linde, Praxair Confirm Talks on Potential Megamerger

The video discusses the consolidation in the industrial gases industry, focusing on the merger between Linda and Praxair. It highlights the benefits of cost synergies and pricing power, while also addressing antitrust concerns and potential asset sales to satisfy regulators. The deal structure involves an all-share swap, reflecting broader market consolidation trends. Historical context is provided, noting past mergers and leadership influence, with skepticism about short-term gains versus long-term success.

What is one of the main benefits for companies involved in the merger between Linda and Praxair?

• Increased competition

• Cost synergies

• Decreased market share

• Higher customer satisfaction

What is a potential obstacle that the Linda and Praxair merger might face?

• Lack of investor interest

• Antitrust regulatory scrutiny

• High operational costs

• Insufficient market share

What type of deal structure is being considered for the Linda and Praxair merger?

• Cash purchase

• Debt financing

• All-share swap

• Joint venture

In the context of the chemicals industry, what has been a significant trend?

• Decrease in mergers and acquisitions

• Increase in mergers and acquisitions

• Stability in market players

• Focus on crop chemicals only

What is a reason for skepticism regarding large mergers like the one between Linda and Praxair?

• Guaranteed success

• Potential short-term gains

• No need for integration

• Lack of leadership involvement