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Linde Divests Select Korean Assets to IMM for $1.2 Billion

Linde AG

Linde AG completed the sale of select assets of Linde Korea for $1.2 billion to IMM Private Equity

Linde AG, the German industrial gases group, divested select assets of Linde Korea to IMM Private Equity Inc., a domestic private equity firm, for an overall consideration of $1.2 billion. The move is in line with the recent $86 billion merger between Linde AG and Praxair, Inc. and the Korea Fair Trade Commission.

The assets divested include bulk and on-site business in Pohang, Seosansites and Giheung as well as oxygen and nitrogen on-site generators. The business generated annual sales of approximately $220 million and an EBITDA of just over USD 83 million in 2017.

Earlier in October 2018, the competition watchdog in South Korea said the Praxair, Inc. and Linde would have to sell some of their South Korean assets, as their combination would restrict the competition in the market IMM Private Equity Inc. will be buy the industrial gas business of Linde South Korea, though Linde will be retaining its special gas operations in South Korea. The merger between Linde AG and Praxair, Inc. had earlier won the U.S. antitrust approval.

According to Techsci Research, the all share merger between Linde AG and Praxair, Inc. now creates an industry leader with 80,000 employees across more than 100 countries and a revenue of about $27 billion, as per the 2017 figures.

According to a report published by TechSci Research, Global Industrial Gases Market By End-User (Manufacturing including Chemical & Petrochemical, Food & Beverages and Others), By Type (Oxygen, Nitrogen, Argon, Hydrogen & Carbon Dioxide), By Mode of Distribution (Tonnage, Bulk & Packaged), By Region, Competition, Forecast & Opportunities, 2024, the global industrial gases market is forecast to grow from $ 83.9 billion in 2018 to $ 122.7 billion by 2024, exhibiting a CAGR of around 6.7% during 2019-2024, on account of rising demand from chemical & petrochemical, metal fabrication & production, automotive, healthcare & pharmaceuticals and food & beverage industries. Expanding refinery capacity, increasing consumption of chemicals & petrochemicals and rising adoption of enhanced oil recovery (EOR) techniques in oil & gas sector are few of the primary factors expected to aid global industrial gases market. Moreover, rising passenger car sales are anticipated to propel demand for industrial gases across the globe during forecast period.

According to another report published by TechSci Research, Global Small Scale LNG Market By Application (Industrial, Transportation, Utilities, Others), By Mode of Supply (Truck, Rail Tanks, Trans-shipment), By Region Opportunities & Forecast, 2012 -2026, the global small scale LNG (SSLNG) market stood at $ 25.7 billion in 2016, and the market is projected to reach $ 51.9 billion by 2026. Globally, growing demand for SSLNG from remote areas, especially for power generation, is one of the major factors driving the global small scale LNG market. Other factors such as increasing inclination towards greener and cleaner fuel coupled with low prices of natural gas are also aiding global small scale LNG market. Moreover, fluctuations in crude oil prices are expected to encourage customers across the globe to opt for small scale LNG over diesel, furnace oil or coal in the coming years.

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