Air Products Rallies Shareholders Amid Push for Clean Hydrogen Strategy
Key Ideas
- Air Products urges shareholders to support its strategy emphasizing clean hydrogen alongside core gas business growth.
- Mantle Ridge activist investor, led by Paul Hilal, aims to collaborate with former Linde executives to reshape Air Product's board.
- D.E. Shaw calls for board overhaul, CAPEX limits, and CEO succession plan, prompting strategic discussions within Air Products.
- The global shift towards lower carbon energy sources is highlighted as a driving force behind Air Products' clean hydrogen push.
Air Products is making a plea to its shareholders to back its existing director nominees as an activist investor, Mantle Ridge, advocates for a significant change in the company's strategy. The focal point of this push for change includes an intensified focus on clean hydrogen alongside the growth of its core gas business. The company is striving to garner support for its strategy in the midst of challenges related to capital expenditures on clean energy initiatives. The strategy is designed to enhance shareholder value in alignment with the increasing adoption of lower carbon energy sources worldwide. Mantle Ridge, under the leadership of Paul Hilal, is planning to team up with two former Linde executives to bring about alterations to Air Product's board structure. Concurrently, D.E. Shaw has called for a transformation of the board, restrictions on capital expenditures, and the implementation of a clear plan for CEO succession. These developments reflect the ongoing discussions and potential shifts within Air Products as it navigates through external pressures and internal strategic evaluations.