The deal, which could be announced as soon as this week, would involve a mixture of cash and stock for Ingersoll shareholders, the WSJ said, citing sources.

The deal would be structured as a so-called Reverse Morris Trust, a tax-efficient way for companies to sell off a division, and Ingersoll shareholders are expected to own just over half of the new company.

Gardner Denver Chief Executive Vicente Reynal would lead the merged company, the newspaper said.

Gardner Denver, part-owned by private-equity firm KKR & Co Inc, did not immediately respond to a request for comment. Ingersoll-Rand declined to comment on the deal.

Ingersoll's climate segment, which includes its heating, ventilation and air- and temperature-controlled transport businesses, would not be part of the deal, the WSJ said.

(Reporting by Rishika Chatterjee in Bengaluru; Editing by Peter Cooney)

Stocks treated in this article : Ingersoll-Rand, Gardner Denver Holdings Inc, KKR & Co Inc