DANBURY, Conn. — One of Danbury’s biggest corporate names could soon become half of the planet’s largest industrial gas company, as Praxair holds preliminary merger discussions with German rival Linde AG.
The Connecticut firm confirmed the talks Tuesday morning, calling them exploratory. A brief statement cautioned that negotiations remain fluid, with no guarantee of a final agreement or clarity on potential terms.
Linde acknowledged the negotiations in similarly hedged language. The Munich-based company noted that talks have produced neither concrete outcomes nor binding agreements, adding that whether a transaction materializes remains impossible to predict.
Both businesses carry valuations near $30 billion. Regulatory hurdles would inevitably shape any deal, with antitrust authorities certain to review a combination of this scale.
The timing follows Air Liquide’s $13 billion purchase of Airgas, a transaction that briefly positioned the French company atop the industry by revenue. A Praxair-Linde tie-up would seize that number one spot.
Praxair delivers oxygen, nitrogen, helium, neon, and dry ice across numerous sectors. The Danbury operation employs roughly 400 people and generated $10.8 billion in 2015 sales. Two years ago, the company committed to staying put, announcing a $65 million project to construct a 100,000-square-foot headquarters on the former GE Capital site along Riverview Drive.
Investors welcomed the news. Praxair shares climbed 4.45 percent Tuesday afternoon, closing at $123.39.
The merger chatter arrives weeks after Praxair reported weaker second quarter results, blaming currency fluctuations and soft North American demand tied to energy and manufacturing slowdowns. Net income landed at $399 million, with diluted earnings per share of $1.39.
Local leaders framed the potential deal as standard fiduciary responsibility. Stephen Bull, who heads the Greater Danbury Chamber of Commerce, said shareholders expect management to evaluate opportunities that could boost value and market position.
Bull declined to speculate on local employment effects, citing sparse details. Yet he pointed to Danbury’s deep German connections, including Belimo, Barden, and Boehringer Ingelheim, suggesting a merger would only reinforce those transatlantic business bonds.
