BOC gets profits boost ahead of takeover
UK gases giant BOC today said its £8.2bn (€12bn) takeover by German industrial conglomerate Linde was on course as it reported a “strong trading performance” in the first half.
BOC chief executive Tony Isaac said he did not foresee any delay to the proposed takeover after Linde indicated that it expected regulatory approval by the end of this month or early next month.
BOC agreed to join forces with Linde in March in a deal which will create the world’s biggest industrial gases supplier.
The company today posted a rise in first half revenues from £1.95bn (€2.9bn) to £1.99bn (€2.9bn).
In the three months to the end of March, adjusted operating profits were 6% higher than the same period a year ago at £152.4m (€223m), as turnover grew 5% to £1.01bn (€1.5bn).
Mr Isaac said: “Our gases business continued to grow strongly throughout the first half with better volumes overall and recovery of higher energy costs in selling prices.”
He added: “The continued strong trading performance during the first half reinforces the board’s view that the group is both well positioned to grow and to make steady progress.”
Barclays Stockbrokers analyst Paul Singer said the results were “in line with market expectations” while the outlook “remains positive”.
Mr Singer added that the proposed takeover by Linde was “the key issue” with EU regulators expected to make a decision on June 6.
BOC, which began life in 1886 when brothers Arthur and Leon Brin set up Brin’s Oxygen Company, employs 30,000 people and serves two million customers in more than 50 countries.
The recommended takeover came hot on the heels of other major deals for UK firms, including the £2.2bn (€3.2bn) acquisition of glass maker Pilkington and the £17.7bn (€25.9bn) purchase of mobile phone operator O2. Shipping icon P&O has also been swallowed up by an overseas firm, while airports operator BAA is a bid target.
