MG Industries, a joint venture between German gases group Messer and private equity firm CVC Capital Partners Fund VII, has agreed to buy the majority of Linde's business in North America along with certain activities in South America for $3.3 billion.

The assets being acquired comprise substantially all of Linde's US bulk business and its operations in Brazil, Canada and Colombia, which together generated sales of around $1.7 billion in 2017.

Messer, which regards itself as the world's largest privately managed industrial gases specialist, will contribute to the jv its operations in western Europe, namely those in Spain, Portugal, Switzerland, France, Benelux, Denmark and Germany. These businesses employ 780 people and generated revenues of €334 million in 2017.

“In creating this strategic partnership, we are seizing a unique opportunity to return to the North and South American markets and create a global player in the industrial gases sector,” said Stefan Messer, owner and CEO of the Bad Soden-headquartered company. Messer sold its North American holdings to France's Air Liquide in 2004. 

The sale remains contingent on Linde's merger with Praxair and the receipt of outstanding regulatory approvals, which may require further divestments. The companies are still hopeful of completing the transaction in the second half of this year.