After months of speculation, Linde and Praxair have agreed to merge.
According to Reuters, current shareholders will each own about 50 percent of the newly formed company.
The combined company will have a market value exceeding $65 billion.
Linde, headquartered in Germany, and U.S.-based Praxair are two of the world’s leading suppliers of industrial gas. The tie-up will aim to combine Linde’s technology know-how with Praxair’s efficient operating model.
“The strategic combination between Linde and Praxair would leverage the complementary strengths of each across a larger global footprint and create a more resilient portfolio with increased exposure to long-term macro growth trends," said Steve Angel, Praxair’s Chairman and CEO.
This merger is just the latest in a string of consolidation efforts in the industrial gas sector. Weakening demand growth from the manufacturing, metals and energy industries also led to Air Liquide’s acquisition of Air Gas, which was finalized earlier this year.
The companies announced that Praxair’s CEO, Steve Angel, will become CEO of the combined company. The new company will continue to hold corporate offices in the U.S. and EU., as well as Linde’s two biggest manufacturing facilities in Germany.
Other details about any planned divestments or job cuts have so far remained undisclosed.
The deal will, of course, still have to pass the sniff test from antitrust regulators and be approved by both companies’ shareholders before it is finalized.