Presidencia de la Nación

In July 2023, as a result of the analysis of the merger between Linde and Praxair ̶ two of the main suppliers of medical and industrial gases at national and global level ̶ the National Commission for the Defence of Competition (CNDC, for its acronym in Spanish) issued an opinion under the terms of Section 14, subsection b) of Act No. 27. 442 on Defence of Competition (LDC, for its acronym in Spanish), concluding that the economic concentration operation, as originally notified, infringed article 8 of the LDC, by diminishing, restricting or distorting competition and could result in a detriment 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 7.5% 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.

The company Roberto Salinas e Hijos S.A., known as Cascia Gases, acquired the assets divested by Linde/Praxair. The buyer is an Argentine company founded in 1974, which owns a production plant in the province of Tucumán where it produces oxygen (which it supplies for industrial and medical use), nitrogen and argon. The company also markets other gases such as carbon dioxide, nitrous oxide, acetylene and special application mixtures, and offers oxygen therapy services.

Prior to the acquisition, Cascia Gases had a 2% share of total domestic liquid oxygen production, based on installed capacity. As a result of the acquisition, it will hold 9.5% of this capacity. At the same time, its gas supply was mostly limited to the northwest of Argentina.

According to the company's own statements, the purchase of these assets will allow the company to "enter the medical and industrial markets in regions such as NEA, NOA, CENTRO and CUYO directly, with the availability of 75 tonnes of oxygen per day, the acquisition of three fractionation plants, the transfer of a portfolio of more than 100 customers, and the incorporation of assets necessary for the expansion plan".