Elliott Builds Stake in Air Liquide to Push for Margin Improvements
Activist investor Elliott has reportedly built a stake in French industrial gases company Air Liquide, urging the firm to improve its profitability and compete more effectively with peers like Linde. The move sent shares up by as much as 4.2% on Tuesday, marking one of the stock's strongest gains in six months. Air Liquide has an operating margin of around 21%, significantly lower than Linde’s 30%. Elliott is pushing for a more aggressive efficiency strategy and potentially higher returns through cost optimization or share buybacks ahead of Air Liquide’s October capital markets day. The company also holds a record €5.5 billion in investment projects, including major semiconductor-related expansions. The activist campaign highlights concerns about the margin gap between industry leaders while emphasizing that industrial gases are mission-critical and offer strong pricing power. Elliott's push is not solely focused on cost-cutting but rather ensuring growth translates into stronger profitability.
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