Taiyo Nippon Sanso to Buy European Biz of U.S. Peer Praxair

July 6, 2018

Tokyo- Major Japanese industrial gas producer Taiyo Nippon Sanso Corp. said Thursday that it will acquire the European businesses of U.S. peer Praxair Inc. for 5 billion euros, or about 640 billion yen, in November.

Taiyo Nippon Sanso is aiming to beef up the foundation for its operations in Europe and accelerate its business globalization.

The acquisition value almost equals the firm's consolidated sales of 646.2 billion yen in fiscal 2017, which ended in March.

The acquisition comes as the European Commission, the executive organ of the European Union, has urged Praxair to sell its operations in Europe to a third party on antitrust grounds, as the U.S. company is planning business integration with German gas giant Linde AG.

Praxair's European businesses generated sales of some 1,273 million euros in 2017.

Taiyo Nippon Sanso, an affiliate of Mitsubishi Chemical Holdings Corp. said it will raise funds for the acquisition through bank loans and by issuing bonds, while noting that it has no plan to issue new shares. Jiji Press