US industrial gases company Praxair is in talks with German rival Linde about a potential merger. The proposal would create the world’s largest supplier of industrial gases with a value of more than $60 billion. Both companies have confirmed that discussions are ongoing but said no agreement has been reached and there could be no assurance that talks will result in a transaction.

Negotiations between the two groups come less than a year after France’s Air Liquide agreed to buy American competitor Airgas for about $13.4 billion. This acquisition was approved in principle in May, subject to certain divestments. Slower economic growth has weakened demand for industrial goods across various sectors and, together with declining energy prices, has forced gas suppliers to consolidate in order to cut costs and boost revenues.

The proposed deal is likely to face significant antitrust scrutiny given its size and the fact that regulators in Europe and the US have become tougher in enforcing competition rules following several mega mergers in the energy, industrial and healthcare sectors, among others. A merger of the two would generate revenues worth more than $30 billion, according to Capital IQ data. However, any combination is likely to lead to job losses as the two companies will undoubtedly try to cut costs by eliminating duplication in the workforce.

Linde, with a market value of around €27 billion ($30 billion), specializes in selling compressed and liquefied gases for use in steel and glass production, chemical and food processing, and welding among others. Praxair has a market value of around $34 billion and sells its gas products worldwide to companies in several sectors including healthcare, petroleum refining, manufacturing and water treatment.

Both gas companies have reported falls in their first-half revenues this year. Praxair’s revenue fell by nearly 6% to $5.17 billion, while Linde’s overall sales dropped by about 5% to €8.6 billion.