Potential buyer of Linde-Praxair assets in Brazil approved by CADE
22 August 2018. By Flavia Fortes.
The Brazilian competition authority has approved the potential buyer of assets Linde and Praxair have agreed to divest in the country to receive antitrust clearance.
The decision didn’t name the buyer, but said competition concerns were addressed in the agency’s review of Messer-CVC’s deal with Linde, approved earlier this month.
Messer and CVC, through their newly formed joint venture MG Industries, are the potential buyers of the assets identified in the decision, MLex has learned.
The decision was published in the case file and approved by the Tribunal of the Administrative Council for Economic Defense, or CADE, at its session today.
It said the details of the parties’ sheet of assets to be divested are not final, as more assets were included in the “Americas business” package. However, such details don’t concern the Brazilian assets, and the agency was able to review their suitability, the decision said.
On Aug. 3, CADE approved MG Industries’ proposed acquisition of assets Linde agreed to sell as part of the settlement agreement for clearing its merger with Praxair. The specific assets MG Industries has agreed to buy weren’t disclosed.
The package of assets is part of a broader “Americas business” that Linde and Praxair agreed to sell to receive approval in other jurisdictions. MG Industries is buying all of the bulk industrial gases businesses in the United States; industrial and special gases businesses in Canada, Brazil and Colombia; and Praxair’s industrial and special gas businesses in Chile.
CADE’s decision today said the sales agreement with the potential buyer includes the assets mentioned in the consent decree entered by Linde and Praxair with the agency in June.
The agency reviewed the conditions required for the buyer: independence in relation to the parties; financial soundness; incentives to keep the business competitive in Brazil; and no competition concerns.
With respect to competition concerns, CADE said “this issue is resolved following CADE’s approval of the transaction involving this divestiture” in the deal between Messer, CVC and Linde.