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Praxair, BOC to merge?
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May 11, 1999: 3:27 a.m. ET
Report: industrial gas giants discuss $17B merger to become global number one
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LONDON (CNNfn) - Industrial gas leaders BOC and Praxair are discussing a merger which would see the enlarged group leapfrog France's Air Liquide to become the world's largest gases group by market share, according to a report published Tuesday.
Connecticut-based Praxair and London-listed BOC each have around 15 percent of the global gases business. A merger would create a firm with pro forma 1998 sales of $10.4 billion and a market capitalization of around $17 billion, according to the Financial Times report.
The move would be the first sign the global consolidation that is gripping the chemicals sector is spreading to gases.
The newspaper said the merger would solve management issues at Praxair (PX) whose chairman and chief executive is due to step down at the end of the year. BOC, which is going through a major restructuring program, has already been linked with Air Liquide (PAI) and the U.S. number two, Air Products (APD).
The two companies have a good strategic fit with strong market positions in their home markets, Latin America, Asia and Africa, though neither have a large presence in continental Europe, according to the report.
Both companies declined to comment.
Stocks in both companies have climbed strongly in recent weeks. BOC (BOC) shares closed down 4 pence at 1,031 pence Monday, while Praxair closed up 50 cents at 53-1/2 in New York.
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