Linde India Shares Jump On Agreement With Tata Steel To Acquire Air Separation Units

A Major Acquisition

Linde India shares surged by 5% on the BSE on Monday after the company announced that it had entered into an agreement with Tata Steel to acquire its air separation units (ASUs) in Jamshedpur and Kalinganagar for a total consideration of Rs 1,520 crore. The deal is expected to be completed by the end of the year.

Strengthening Linde India's Position

The acquisition of these ASUs will significantly strengthen Linde India's position in the Indian market and help the company to meet the growing demand for industrial gases in the country. Linde India is already one of the leading suppliers of industrial gases in India, and this acquisition will further solidify its market position.

The acquired ASUs have a combined capacity of 1,200 tonnes per day (TPD) of oxygen and 600 TPD of nitrogen. This will increase Linde India's total capacity to over 3,000 TPD of oxygen and 1,500 TPD of nitrogen.

The acquisition is also expected to be accretive to Linde India's earnings per share (EPS) in the first year after completion.

Tata Steel's Divestment

For Tata Steel, the sale of the ASUs is part of its ongoing efforts to reduce debt and focus on its core steel business. The company has been selling non-core assets in recent years, and the sale of the ASUs is the latest in a series of divestments.

The sale of the ASUs is not expected to have a material impact on Tata Steel's operations.

Impact on the Indian Industrial Gas Market

The acquisition of the ASUs by Linde India is expected to have a positive impact on the Indian industrial gas market. The increased capacity will help to meet the growing demand for industrial gases in the country, and it will also lead to increased competition in the market.

The acquisition is also likely to lead to job creation in the Indian industrial gas industry.