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The Competition Commission of India (CCI) has approved the combination of Linde Aktiengesellschaft and Praxair Inc. The approval is, however, subject to the condition that the parties divest their current shareholdings in companies in India that may impact competition.
German company Linde and US-based Praxair manufacture and supply industrial, medical and specialty gases. In addition, Linde operates in the related engineering and services sectors. In India, it has a joint venture with Inox Air Products Ltd. Praxair has an Indian unit.
“The proposed combination is likely to have an appreciable adverse effect on competition in some markets in India but the same could be addressed by way of modifications to the proposed combination,” said CCI in a statement.
Suggested ‘remedies’
The proposed remedies include the divestment of Linde India’s entire shareholding in Bellary Oxygen Company Pvt Ltd, a joint venture between Linde India and Inox Air Products; the divestment of Praxair’s three on-site plants in the East (Tata 1, 2 and 3 located at Jamshedpur) and two cylinder filling stations in Asansol and Kolkata; and the divestment of Linde’s on-site plant in the South (JSW 2 at Bellary in Karnataka) and cylinder filling stations in Hyderabad and Chennai.
“The aforesaid remedies shall be implemented by way of sale and transfer of respective businesses to an independent entity (ies), which meets the parameters prescribed in the order of the Commission,” the statement said.
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