How did a traditional industry produce Germany’s largest market-cap stock?

This market structure has also enabled the industry to sustain healthy profit margins over the long term. Companies achieved significant scale growth through external, acquisition-driven expansion. In fact, the oligopolistic structure was already established following Linde’s acquisition of BOC in 2006. Thereafter, the industry maintained an operating profit margin of around 20% for many years—Air Liquide and Air Products both posted operating margins close to 20%. Linde’s merger with Praxair represented a further consolidation step. Of course, after acquiring Praxair in 2018, Linde incurred additional expenses related to integration, employed extensive capital instruments and debt restructuring, and absorbed Praxair’s relatively lower profitability—leading to a temporary decline in Linde’s overall margin. However, three years into the integration process, the company’s profitability has gradually begun recovering. Meanwhile, during its successive rounds of focused acquisitions, Linde also divested non-core businesses. A notable example familiar to Chinese investors is Linde Forklift Trucks—now KION Group (Germany), which is controlled by Weichai Power. This business was spun off by Linde Group. Indeed, this division was a highly competitive manufacturing unit, world-leading in both logistics equipment solutions and hydraulic technologies. Yet in 2006, facing substantial cash requirements for the BOC acquisition, Linde weighed strategic trade-offs and prioritized strengthening its core gas business—opting to divest Linde Forklift Trucks. In hindsight, this decision proved sound: it significantly reinforced Linde’s competitiveness in the industrial gases sector, laying the foundation for its eventual rise to industry leadership. Thus, even seemingly stagnant or ‘backward’ manufacturing sectors can draw valuable lessons: when capacity overhangs persist and organic growth proves difficult amid sluggish industry expansion, firms should proactively pursue consolidation and M&A to raise industry concentration—thereby unlocking superior economies of scale and improving the sector’s long-term competitive landscape. Such external growth strategies can deliver non-organic, structural growth. Moreover, corporate diversification is not always optimal; focusing relentlessly on the core business often proves the wiser path. Conclusion: The above summary clearly reveals the key ingredients behind Linde Group’s success: unwavering dedication to foundational industrial sectors—130 years without straying from its core mission. Its business model has continuously evolved—from volatile commodity sales toward more stable equipment-revenue streams. By deeply embedding itself within customers’ operations, Linde fosters symbiotic relationships: while per-unit profit margins may narrow, long-term partnerships solidify, ensuring sustainable, recurring revenue. In low-growth industries, companies must skillfully leverage external growth opportunities—seizing timely M&A chances to reduce the number of competitors in the sector, prioritizing core-business focus over diversification, and thereby achieving growth driven not by industry-wide expansion but by structural consolidation—further amplifying economies of scale. For foundational industrial sectors, product iteration cycles are extremely long. Before a new technology or product achieves broad-scale adoption, the industry may remain stuck in prolonged low-growth phases. Most capital-market investors—chasing high returns—dismiss such sectors as outdated or ‘sunset’ industries. Industrial gases still suffer from this perception; similarly, traditional industries like coal, steel, and nonferrous metals face analogous biases. Yet this does not mean these industries are doomed to stagnation forever. Looking ahead, the gas industry’s future lies partly in carbon neutrality: capturing and recycling greenhouse gases is emerging as a major new growth driver for gas equipment manufacturers.

Which stocks are associated with electronic specialty gases?

Nippon Sanso Holdings | Air Products | Air Liquide | Linde As core materials for semiconductor etching, deposition, cleaning, and ion implantation, electronic specialty gases are dominated at the high end globally by these four overseas giants. Domestically, China has achieved global-leading production capacity in several major gas varieties, and certification for advanced process nodes continues to progress steadily.

Rakuten Investment Management Acquires 122,835 Shares of Linde PLC

4 days ago

Rakuten Investment Management acquired 122,835 shares of Linde PLC valued at $58.1 million during the third quarter. Linde exceeded earnings expectations with $9.40 billion in revenue and an EPS of $4.59.

MarketBeat

2026-07-22

ABN Amro Investment Solutions Invests $96.73 Million in Linde PLC $LIN

2026-08-08

Assenagon Asset Management Grows Stock Position in Linde PLC

2026-10-09

Avidian Wealth Enterprises LLC Acquires 3,441 Shares of Linde PLC

2026-10-13

Montrusco Bolton Investments Inc. Acquires 244,948 Shares of Linde PLC

2026-10-15

Linde PLC Shares Newly Acquired by Triangle Securities Wealth Management