Praxair acquires Asiatic Oxygen, Deep Oxygen

MUMBAI, DEC 12: Praxair Inc of the US, which had kick-started its Indian operations last year with the acquisition of the AV Birla group company Hindustan Gas’ industrial gases division, on Friday announced two more acquisitions: Calcutta-based Asiatic Oxygen and Mysore-based, closely-held Deep Oxygen.

Praxair India, the 100 per cent subsidiary of the US-based transnational, signed an agreement with the BK Jalan-controlled Asiatic Oxygen for taking over the assets of its industrial gases division, the second oldest in the country. The transfer of assets will take place in a phased manner. The Rs 22 crore Asiatic Oxygen has a book value of Rs 31.27.

Praxair’s arrangement with Deep Oxygen entails acquisition of the nitrogen and oxygen business of the company, which is a leading supplier of cylinder gas products in south India.

Praxair, however, did not disclose the financial details of the acquisition. Praxair Inc president and director Edgar Hotard said, "The details will be kept closely-guarded for strategic reasons." Praxair’s planned investment in India till 1998 is around Rs 500 crore.

With the acquisition of assets of Asiatic Oxygen, Praxair will get access to its manufacturing facilities in Chennai, Ranipet in Tamil Nadu, Vishakhapatnam, Hyderabad, Durgapur and Howrah, both in West Bengal.