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AIR Products has launched a $5.1b bid for Airgas and says it will go public with a hostile takeover if its rival’s board continues to resist its advances.

The unsolicited bid, an 18% premium on Airgas’ 52 week high, is reportedly the third since the ceos of both companies met to discuss the value of a merger in October last year.

“While we are disappointed that Airgas has thus far prevented its shareholders from receiving a substantial premium and immediate liquidity, we have repeatedly communicated to the Airgas board our willingness to improve our offer to reflect any incremental value they can demonstrate,” says Air Products ceo John McGlade. “We are fully committed to pursuing this transaction and are prepared to take all necessary steps to complete it, including making an offer directly to Airgas shareholders.”

A merger would produce one of the largest industrial gas suppliers in the world. Air Products reasons that the combination is both financially and strategically compelling. Each is based in Pennsylvania, US and McGlade says a tie-up would result in cost savings of $250m by the end of the second year. Furthermore, Air Products concentrates on making liquid bulk gases like oxygen and nitrogen for the industrial US market. Airgas focuses more on delivering cylinders of packaged gas such as nitrous oxide to smaller users like the medical sector – an area Air Products operates in but primarily outside of North America.

Air Products offer includes $5.1b in equity and $1.9b in assumed debt and follows an announcement from Airgas that puts fiscal projections below analyst expectations.