Activist Elliott builds stake in Air Liquide - FT

A New York-based hedge fund, Elliott Management, has taken a stake in French industrial gas company Air Liquide, according to unnamed sources familiar with the situation. The exact size of the investment and potential changes sought from management are not disclosed. Air Liquide's market capitalization of approximately €108 billion makes it Elliott's most prominent target on the Euronext exchange.

The hedge fund, which manages around $80 billion, has previously pushed for changes at Pernod Ricard after acquiring a 2.5% stake in the French drinks group in 2018. Air Liquide provides industrial gases such as oxygen, nitrogen, and hydrogen to industries including heavy manufacturing. However, its profitability has been lagging behind that of U.S. rival Linde, presenting a potential area for an activist investor to address.

In 2025, Air Liquide's operating margins were around 21%, compared to approximately 30% for Linde. The margin gap has widened since Linde's merger with Praxair in 2018, which allowed the combined company to embark on a restructuring and operational efficiency program. Analysts anticipate the margin differential between the two companies to persist through 2030.

Furthermore, Air Liquide's capital allocation has been less robust than Linde's, having returned about €14 billion to shareholders through dividends and buybacks over the past decade, compared to Linde's roughly €45 billion over the same period. Additionally, Air Liquide has never undertaken a major share repurchase program. The company's exposure to the semiconductor and artificial intelligence investment boom could provide an additional avenue for value creation, as its electronics division is the world's largest supplier of gases used in semiconductor manufacturing, accounting for roughly 10% of group revenue.