Linde, who has built the largest natural gas liquefaction plant in Europe, completed the full acquisition of Elgas.
German gases and engineering group Linde has taken full control of the Australian liquefied gas company Elgas for AUD 221 million.
The full acquisition was completed as Linde bought the remaining 50 per cent shareholding from its joint venture partner AGL Energy Limited.
Elgas, a major gas supplier to forklifts, operates Australia’s largest LPG storage facility at Port Botany in Sydney. It reported sales of AUD 400 million in 2007.
Linde CEO Wolfgang Reitzle said the transaction would enable the company to strengthen its position as the leading supplier of gases in the Australian market.
“We will profit from the synergies between the LPG business and our strong industrial gases business. We can leverage the Elgas infrastructure and management to expand and improve our combined LPG businesses across Australia and New Zealand,” Dr Reitzle said.
AGL managing director Michael Fraser said that the sale was a very good outcome also for AGL.
“This sale brings to an end a 24-year investment AGL has held in Elgas. The sale proceeds will go directly to reducing our debt and further strengthening the company’s balance sheet.
“The sale of Elgas is further evidence of AGL’s ongoing program of non-core asset disposals , which will ensure balance sheet flexibility at a time when significant new opportunities, both organic and greenfield, are emerging in Australian energy markets,” Mr Fraser said.
The Linde Group posted sales of around AUD 22 billion in 2007, with more than 50,000 employees worldwide.
In its South Pacific and Africa operating segment, it achieved sales of 1.28 billion euro in the year, with gases sales in the region increased by 11 per cent to 775 million euro.
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