Standard&Poor's Ratings Services said today that, following the decision by the European Court of First Instance to cancel the competition authorities' veto of France-based Schneider Electric S.A.'s (A/Stable/A-1) merger with Legrand (A-/WatchNeg/A-2), the ratings and outlook on Schneider remain unchanged. Despite the decision, Standard&Poor's believes it is unlikely that Schneider will cancel its proposed €3.6 billion sale of its 98% stake in Legrand to the Wendel consortium. Such a cancellation would be costly for Schneider in terms of finances (a €180 million break-up compensation would have to be paid), time, and renewed uncertainty about a new merger review by authorities. Should Schneider decide to cancel the sale, however, the potential impact remains unclear, though a ratings
