French industrial gas company Air Liquide has emerged as a finalist in the acquisition of DIG Airgas, and attention is being paid to whether it will re-enter the industrial gas bulk market in Korea. The industry's eyes and ears are focused on whether Air Liquide's victory will reorganize the landscape of the Korean industrial gas market.

Air Liquide has been selected as the final candidate to acquire DIG Airgas, South Korea's third-largest industrial gases company, owned by Macquarie Asset Management (MAM).

Air Liquide, which was invited to a binding bid along with Brookfield Asset Management and Stonepeak, is expected to sign a final contract in late July or early August.

DIG Airgas has large-scale ASU (air separation units) and special gas manufacturing facilities in eight locations nationwide, including Banwol, Yangsan, Yeocheon, Cheongju, Daejeon, Gumi, Paju, and Ulsan.

Since being acquired by MAM for $1.85 billion in 2019, the company has expanded its business into the EV charger, ESS, and high-purity gas markets for semiconductors.

The sale is expected to be a watershed moment for Air Liquide Korea's return to the Korean market after it withdrew from its bulk business in 2016.

In 2016, Air Liquide Korea completely withdrew from its bulk supply business.

In the same year, Linde Korea, a Korean subsidiary of the German Linde Group, acquired Air Liquide Korea's industrial gas and electronic gas on-site and bulk business, securing 10 small nitrogen plants, storage tanks, equipment, sales rights, and professional manpower nationwide.

Through this, Linde expanded its customer base to include large corporations such as Samsung, LG, Lotte Chemical, and SK Hynix, and solidified its position in the domestic industrial gas market.

If the DIG Airgas acquisition goes through, Air Liquide is likely to re-enter the bulk business.

Establishing a foundation for simultaneous operation of on-site gas production and liquid bulk distribution network It will provide a stable gas supply system to industrial sites.

In particular, bulk facilities equipped with high-purity oxygen, nitrogen, and argon, which are essential for semiconductor, display, and chemical processes, and large storage tanks will further strengthen Air Liquide’s technology portfolio.

The Korean industrial gas market is structured around competition between global and local companies such as Linde Korea, Air Products, and Airfirst.

Air Liquide's re-entry is expected to further increase competition while expanding customer choice.

Brookfield and Stonepeak, which were also finalists for MAM, are specialized energy infrastructure and infrastructure funds, and are expected to seek to expand their market share based on their capital strength and operational know-how after the acquisition.

In addition, DIG Airgas’ 60 km hydrogen pipeline and 250 tube trailers are aligned with Air Liquide’s expansion of its hydrogen business.

The final round of the DIG Airgas acquisition is expected to close in late July or early August.

If Air Liquide wins, the landscape of the Korean industrial gas market is likely to be reorganized.