On July 3rd, the National Commission for the Defence of Competition (CNDC) issued an opinion under the terms of section 14, subsection b) of Act No. 27. 442 of the Law on Defence of Competition (LDC) and concluded that the economic concentration operation, which consisted of the merger between Linde and Praxair ̶ two of the main suppliers of medical and industrial gases at national and global level ̶ as originally notified, infringes section 8 of the LDC, by diminishing, restricting or distorting competition in a way that may result in harm to the general economic interest.

In view of the detrimental effects of the concentration in the production of oxygen, and given that it is an essential good in the field of health and an important input in a variety of industries, the CNDC recommended to the Secretary of Commerce to make the approval of the transaction subject to the fulfilment of a conditionality that includes a series of structural and behavioural remedies.

The structural remedies comprise a deconcentration at all links in the liquid oxygen chain to ensure the entry of a new competitor into the market with a 9.5% share, so as to restore pre-transaction competitive conditions.

The measures consist of:

a) the establishment of a contract for a duration of 5 years, with two renewal options for a further 5 years each, to ensure the provision of 75 tonnes per day of liquid oxygen at production cost;

b) the sale of three liquid oxygen fractionation plants and two tank trucks for its transfer; and;

c) the transfer of oxygen supply contracts with public and private hospital customers in different parts of the country.

For the asset sale process, the CNDC required the parties to submit a Selling Agent and a Monitoring Agent. The Selling Agent must carry out the asset sale process, supervising and controlling the fulfilment of the commitment assumed by the parties. The Monitoring Agent, among other obligations, must submit reports to the CNDC regarding the process of sale of the assets and compliance with the conditionality, and must implement a complaints channel so that any human or legal person can anonymously report and provide evidence in the event of non-compliance with the conditionality imposed.

For this purpose, on August 4th, the parties appointed the firm Pistrelli, Henry Martin y Asociados S.R.L. (a member firm of the consulting firm Ernst & Young) as Selling Agent and Monitoring Agent.

The contact details are as follows:

Contact person: C.P.N. Pablo de Gregorio | Partner **
**Address: 25 de Mayo 487 (C1002ABI) CABA
Phone number: 4318-1600/4311-6644