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Bloomberg
Linde AG and Praxair Inc. are poised to get a so-called statement of objections listing potential reasons for the European Union’s antitrust regulator to block their proposed $46 billion merger, according to three people familiar with the EU review.
Such a filing — common in complex merger probes — would lay out precise concerns with the transaction combining the German and US industrial gas suppliers and should provide a road map for what the companies would need to sell to win approval.
The document is likely to be sent in the coming days, said the people on condition of anonymity because the process isn’t public. Companies can argue with the European Commission, the EU’s regulatory arm, in writing and at a closed-door hearing and seek to allay potential problems with concessions. According to the EU’s strict deadlines for deal reviews, any SO would need to be issued by the end of the month.
Linde and Praxair set hard limits on divestments when they first hashed out their merger plan, capping what they would sell and fixing an October deadline to get antitrust approvals. Combined, the assets can’t have more than 3.7 billion euros ($4.4 billion) in annual sales or earnings before interest, depreciation and amortization of 1.1 billion euros.
Munich-based Linde is making progress on asset sales that it will need to sell to win regulatory approval, Chief Executive Officer Aldo Belloni said earlier this month.