Brazil: Praxair-Linde merger may wobble over Brazil hurdle

An expected merger between global Gas companies Praxair and Linde has recently raised concerns about the possibility of a long and thorough review of its possible effects on South America’s regional markets,. The companies have recently confirmed having started negotiations over their eventual union.

The companies have said they are already contemplating the need for possible asset sales in order to allay concerns over competitive effects, including selling off some local production operations completely.

Analysts have predicted the toughest hurdle for the merger to be Brazil, where a joint Praxair-Linde company would instantly control more than 60% of the country’s industrial gas market. However, similar reviews in other countries have often concentrated on sub-regional, rather than national markets, due to the difficulty involved in transporting and processing the fuel.

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