GIC seen as front runner for $2.9 billion stake in German gas giant Messer
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GIC is estimated to manage about US$690 billion of assets, according to research firm Global SWF.
PHOTO: REUTERS
FRANKFURT – Singapore sovereign wealth fund GIC has emerged as the front runner to buy a stake in Messer, a deal that could value the German industrial gas specialist at more than US$10 billion (S$13.3 billion), people familiar with the matter said.
GIC is in talks to inject about €2 billion (S$2.9 billion) into Messer in return for a 20 per cent stake, the people said, asking not to be identified because the information is private.
While GIC is currently seen as the most likely investor, global investment company EQT is also shortlisted and remains interested, they said.
Messer, which is based in the outskirts of Frankfurt, has been under family control for 125 years. The stake sale would give key shareholder representatives Stefan Messer and his son Marcel ammunition to buy full control of a joint venture with CVC Capital Partners.
The German company has been in talks to buy out the private equity firm from the joint venture, known as Messer Industries, which owns industrial gases producer Linde’s former assets in North and South America. Those negotiations are ongoing and have not led to an agreement on terms yet, the people said.
Any deal would mark the second marquee investment in a family-owned German industrial group in as many months. Closely held manufacturing company Viessmann agreed in April to sell most of its business to United States air-conditioner maker Carrier Global for about €12 billion.
Representatives for EQT, CVC, Messer and GIC declined to comment.
Bloomberg News reported in January that Messer is in talks to raise funds from external investors and has sounded out sovereign wealth funds and buyout firms.
Messer’s operations have more than 11,000 employees globally and reported about €4.2 billion of sales in 2022, according to its website.
The company, which focuses on industrial, medical and speciality gases, competes with companies such as Air Liquide and Air Products and Chemicals. Beyond industrial gases, it builds cutting systems and gas control equipment.
GIC is estimated to manage about US$690 billion of assets, according to research firm Global SWF. BLOOMBERG
