Industrial gas maker Air Water to buy Praxair's Indian assets
NEW DELHI, NNA - Major Japanese industrial gas maker Air Water Inc. will purchase part of a U.S. gas manufacturer's Indian business to strengthen its foothold in the South Asian country.
Air Water said Friday it has agreed with Praxair India Pvt. Ltd. to acquire the manufacturing and sales operations of oxygen, nitrogen and argon in eastern India for 15.3 billion rupees ($219 million) in cash.
The Osaka-based firm said it plans to complete the purchase in mid-July through its wholly owned subsidiary Air Water India Pvt. Ltd.
Air Water's bid came after the Competition Commission of India ordered the U.S. firm last September to divest part of its Indian operations to a third party following a merger deal between Praxair and Germany's Linde AG in 2017.
The acquiring assets include three cryogenic air separation units and other related facilities at an on-site gas plant in the state of Jharkhand as well as cylinder filling stations in the state of West Bengal, Air Water said in a statement.
A large majority of the assets is the gas supply business for blast furnace manufacturing for Tata Steel Ltd., an Air Water spokeswoman in Tokyo said.
Air Water also said the acquisition of the eastern Indian operation will be complementary with downstream operations of industrial gas maker Ellenbarrie industrial Gases Ltd., which it took over in 2013 to make inroads into the Indian market. (NNA/Kyodo)