FTC Clears Air Liquide-Airgas Deal
The US Federal Trade Commission has approved the acquisition of US gases producer Airgas by French competitor Air Liquide, a deal announced in November 2015 and said at the time to be worth $13.4 billion.
In exchange, the two companies have agreed to divest a number of asset, including 16 air separation facilities producing bulk oxygen, nitrogen, and argon – 12 of which are owned by Air Liquide and four by Airgas – as well as two of Air Liquide’s nitrous oxide plants and four of its plants producing liquid carbon dioxide and dry ice. Two Air Liquide units manufacturing just liquid carbon dioxide and three Airgas retail packaged welding gas stores in Alaska are also part of the divestiture package.
The French company said the asset sale is “well underway,” and the transaction is set to close on May 23. The takeover went through without opposition from Airgas management or shareholders after Airgas in 2012 rejected a hostile bid – at nearly $6 billion worth only half the current purchase price – from US rival Air Products.
Airgas will now become a wholly owned subsidiary of Air Liquide, which in turn will become the largest gases producer in the US. The French company also expected to take back its position as world’s largest player in terms of revenue. It lost its crown after the acquisition of British rival BOC in 2007 made Linde’s gases division the world’s largest player.
