Linde AG and Praxair Inc. announced that the companies intend to combine in a merger of equals under a new holding company through an all-stock transaction. The proposed merger would bring together two leading companies in the global industrial gas industry, leveraging the proven strengths of each. The transaction would unite Linde’s long-held leadership in technology with Praxair’s efficient operating model. The combined company would enjoy strong positions in all key geographies and end markets. In addition, it would enable the development and delivery of more innovative products and services.

The combined company would be governed by a single Board of Directors with equal representation from Linde and Praxair. It would adopt the Linde name and be listed on both the New York Stock Exchange and the Frankfurt Stock Exchange. The new holding company would be formed and domiciled in a neutral member state of the European Economic Area, with the CEO based in Danbury, Conn. Corporate functions would be appropriately split between Danbury and Munich, Germany.

Under the proposed terms of the transaction, Linde shareholders would receive 1.540 shares in the new holding company for each Linde share exchanged in the German offer, and Praxair shareholders would receive one share in the new holding company for each Praxair share. As a result, current Linde and Praxair shareholders would each own approximately 50% of the combined company. Based on 2015 reported results, the combination would create a company with pro forma revenues of approximately $30 billion, prior to any divestitures, and a current market value in excess of $65 billion.