ACCC accepts gas company divestiture in international Linde AG / BOC Group Plc industrial gas merger

Linde AG and Linde Gas Pty Ltd have provided a court enforceable undertaking to divest the business of Linde Gas in Australia in order to allay the ACCC's competition concerns about the impact of the international merger on Australian markets.

"The undertaking is necessary to ensure that prices for industrial, medical and specialty gases in Australia do not rise as a result of the international acquisition", ACCC Chairman, Mr Graeme Samuel, said today.

It requires Linde AG to divest the business of Linde Gas in Australia to an ACCC approved buyer. Linde Gas's Australian business includes tonnage, bulk and cylinder supplies of gases and associated gas businesses.

"The ACCC conducted extensive market inquiries about the impact of the transaction on competition in local markets. It has decided that, subject to the divestitures, the acquisition will not lead to a substantial lessening of competition in any relevant market".

The BOC Group and its businesses in Australia hold a very large market share for the supply of industrial, medical and specialty gases. Without the undertaking, the merger would result in only one competitor competing with the merged firm at a national level.

Linde AG and Linde Gas Pty Ltd's undertaking will appear on the ACCC's public register shortly.

Background

Linde AG and the BOC Group plc have commenced a merger by Scheme of Arrangement subject to the laws of the United Kingdom. The European Commission and United States Federal Trade Commission have also approved the acquisition, subject to certain divestitures within their jurisdictions.