In Frankfurt, many are likely to be very angry about this news this Tuesday: The industrial gases group Linde wants to say goodbye to the Frankfurt Stock Exchange. The board of directors decided to propose to the shareholders to withdraw from the Frankfurt stock exchange, the Noch-Dax group announced late Monday evening.
It is a hard blow for the German capital market. Because Linde has not only been a member of the leading German index since it was founded in 1988. With a valuation of more than 140 billion euros, the company is also the most valuable stock exchange company in Germany. A loss by Linde would hit the Dax and thus the German stock exchanges hard. In the future, Linde shares will only be traded on the New York Stock Exchange.
In plain language: The presence on the Main is simply not worth it
The explanation for the decision is particularly painful for Deutsche Börse: the double listing in New York and Frankfurt has a negative impact on the company’s valuation, said CEO Sanjiv Lamba. In plain language: The presence in Frankfurt is simply not worthwhile. The Linde share has so far been traded on both stock exchanges, but the lion’s share of stock exchange trading already takes place in New York. Nevertheless, the presence in Frankfurt was also an important symbol, Linde is likely to have a larger number of small German shareholders.
“We are very proud of our rich history and strong presence around the world, including our origins in Germany,” said Samba, who has been managing Linde for a good six months. The double listing has served well, but it has slowed down the price development due to the restrictions in Europe.
The traditional Munich company Linde, founded in 1879, merged with US competitor Praxair in 2018. The merger was controversial, and most of the management functions have since migrated to the United States. If the withdrawal plans are implemented, a new holding company would be formed, Linde said. Shareholders would receive one share in the new holding company, which is to be listed on the New York Stock Exchange, for every share held by Linde plc.
After all, the new holding company will continue to bear the name Linde. The proposal has no impact on the organizational structure, employees, customers or the presence of Linde, said Samba. Germany will remain an important market. Linde’s headquarters used to be in Munich, but the group has a large location in Höllriegelskreuth, south of the city. The company was recently criticized for an order worth billions for the Russian gas company Gazprom, which had been agreed before the war broke out and is now largely dormant.