Linde (LNEGY) stocks surged Wednesday after it confirmed renewed merger talks with Praxair (PX) to create the world's largest industrial gases supplier after discussions collapsed in September.

Linde's shares were up 7% to €160.34 by 09:15 GMT, taking the year-to-date advance to 20.76%.

Late Tuesday, Munich-based Linde said it had received a revised proposal from Praxair concerning a potential merger of equals. "The executive board of Linde is reviewing the proposal," the company said.

Danbury, Conn.-based Praxair confirmed it had approached Linde about resuming merger discussions, but added in a statement that there "can be no assurance that this will result in a transaction, or on what terms any transaction may occur."

The last set of talks broke down less than a month after the first approach but broke down on governance issues.

"While the strategic rationale of a merger has been principally confirmed, discussions about details, specifically about governance aspects, did not result in a mutual understanding," Linde said at the time.

The talks were terminated at the recommendation of shareholder representatives in the supervisory board and CEO Wolfgang Büchele, the company said.

A day Linde stepped away, its chief financial officer Georg Denoke stepped down and the CEO said he would not extend his contract when it terminated in April 2017. Denoke had reportedly played a part in the talks collapsing.

The global industrial gases market is poised for continued expansion over the next several years, while at the same time companies face pressure to invest heavily in capital equipment to beef up production and confront high costs for storage and transportation.

The global industrial gases market, valued at $47.2 billion in 2015, is expected to grow at a compound annual growth rate of 6.2% during 2016 and 2022, according to P&S Market Research.

A merger could create a company with combined revenue of $31 billion and market value of around $60 billion.

That compares with French rival Air Liquide's $24 billion of revenue and market cap of €33 billion. Air Liquide acquired Randor, Pa.-based Airgas in May this year, a move that created the world's largest industrial gas supplier.

Air Liquide's shares rose 2.7% by  09:15 GMT, trimming the year-to-date decline to 3.8%