Concerns the proposed $70bn coming together of Praxair, Inc. and The Linde Group may reduce competition in the supply of several crucial gases have been raised by the European Commission as it opens an in-depth investigation into the merger.
The Commission said it was particularly concerned about the merger’s impact in the oxygen (O2) and helium (He) markets.
Commissioner Margrethe Vestager, responsible for competition policy, said, “Gases – like O2 and He – are crucial inputs for a large variety of products we use every day. Manufacturers need to buy these gases from a small number of suppliers. We will carefully assess whether the proposed merger between Praxair and Linde would lead to higher prices or less choice for European consumers and businesses.”
The transaction would reduce the number of major players active worldwide and in Europe for the supply of carbon dioxide (CO2), O2, He and many other gases to just three. Other players in the market only have regional, national or local presense and lack the technical and financial capabilities to compete on an equal footing, the Commission explained in a press release.
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