CADE's General Superintendence concludes opinion regarding the merger between Praxair and Linde in the industrial gas field
Merger Control Agreement
CADE’s General Superintendence signed an opinion on the 2nd May recommending the approval of the merger between the multinational companies Praxair (also known as White Martins) and Linde, in the industrial and special gas market, conditioned upon the signature of a Merger Control Agreement (ACC in its acronym in Portuguese).
The analysis carried out by CADE’s General Superintendence confirmed a general perception that the Brazilian market of industrial and special gas as a whole is highly concentrated and that the companies (mainly Praxair) are the main players in the market.
In that sense, Praxair and Linde proposed an ACC that encompasses the divestment of several businesses and that addresses potential competition concerns arisen by the transaction.
The General Superintendence concluded that the agreement eliminates the concentrations in the regional markets of industrial and special gas, commercialized in bulk or cylinder. In addition, the agreement includes all the necessary assets for the buyer of the divested business maintains its position as a relevant competitive force in medium and long terms.
The Superintendence’s opinion regarding the transaction is non-binding. The merger was forwarded to CADE’s Administrative Tribunal, which is responsible for issuing a final decision. The transaction was notified on 8 December 2017 and the legal deadline for the final decision is up to 240 days, which can be extended for 90 days.
Access the merger files nº 08700.007777/2017-76.