Japanese industrial gas company Air Water Inc. (AWI) has completed its acquisition of Linde India Limited’s South Region Divestment Business through its subsidiary Air Water India Private Limited (AW India).
The business transfer agreement sees AW India acquire the related business of manufacture, sale and distribution of oxygen, nitrogen and argon operated in South India (South Region Divestment Business).
Linde AG and Praxair, Inc. entered into a business combination agreement on 1st June 2017. The Indian Government’s competition authority, the Competition Commission of India (CCI), directed the companies to sell part of their Indian business to a third party.
“After deliberations on the acquisition, our Board decided on 26th June (2019) to submit a binding offer to acquire the South Region Divestment Business,” AWI explained in a statement.
“After negotiations on the terms and conditions of the acquisition, we concluded the Term Sheet on the acquisition with Linde India on 13th August (2019).”
“We will conclude the business transfer agreement after receiving the approval of CCI and the shareholders of Linde India.”
AWI said it had been focusing on expanding its overseas business in India. The company made inroads into the Indian market through the acquisition of Ellenbarrie Industrial Gases Ltd., a local industrial gas manufacturer, in 2013 and established AW India in 2014.
AW India also acquired the industrial gas business in East India from Praxair India Private Limited on 12th July (2019).
Speaking about the new acquisition, AWI said, “The demand for industrial gases is expected to grow along with the economic growth in India.”
“The onsite gas supply business for the blast furnace steel manufacturing, in which we have extensive operating knowledge in Japan, will comprise great majority of this growth.”
“We will establish a strong trust relationship with customers by consistently supplying industrial gases. In doing so, we will capture business opportunities presented before us as crude steel production increases in the future.”
“The acquisition will allow us to acquire liquefied gas production, supply bases and customers in South India.”
“Through these together with Ellenbarrie’s business platform, on which it operates 2 merchant business mainly in East and South India, we will expand our business in South India, where the consolidation among industries (such as automobile and IT related sectors) has accelerated and the demand for industrial gases has significantly increased recently.”