Air Liquide is buying Airgas for $13.4 billion

Air Liquide SA is buying Airgas for $143 per share in cash, the companies announced on Tuesday.

The deal gave Airgas, an industrial gas supplier, an enterprise value of $13.4 billion. Paris-based Air Liquide SA paid about a 40% premium to Airgas' closing price on Monday.

Shares of Airgas surged by as much as 29% after a trading halt for news pending was lifted.

Bloomberg had reported that Air Liquide SA was in acquisition talks to create the world's largest supplier of industrial gases.

"This combination offers significant benefits for all of our stakeholders due to the highly complementary nature of the two businesses," Air Liquide CEO Benoît Potie said in a statement. "It also advances Air Liquide's vision to lead the industry and deliver long-term performance while acting responsibly. This acquisition increases our geographic reach in the resilient U.S. market, and offers continuous growth opportunities."

The deal has been approved by the boards of both companies.

It gives Air Liquide a share of the US natural gas market, and the company expects its gas and services sales would increase by about 30%.

Air Liquide expects to gain about $300 million in cost and other synergies.

Goldman Sachs and Bank of America are acting as financial advisors to Airgas. Barclays and BNP Paribas are advising Air Liquide.

Here's a chart showing Tuesday's spike in shares after trading resumed: