Bulletin: Compagnie de Saint-Gobain Ratings And Outlook Unchanged On Resolution Of Sika AG Transaction

LONDON (S&P Global Ratings) May 16, 2018--S&P Global Ratings said today that its ratings and outlook on Compagnie de Saint-Gobain (BBB/Stable/A-2) are unchanged following Saint-Gobain's announcement that it had reached an agreement with Sika AG (A-/Stable/A-2) and the Burkhard family to end the long-running legal dispute over Saint-Gobain's planned acquisition of Sika AG. In December 2014, Saint-Gobain agreed to buy the Schenker-Winkler Holding (SWH) company from the Burkhard family for about Swiss franc (CHF) 2.8 billion. If the deal were completed, this would have given Saint-Gobain about 17% of Sika's capital and 53% voting rights. The transaction was opposed by Sika's management and had been subject to a legal dispute for about 3.5 years. Under the agreement just reached, Saint-Gobain

...LONDON (S&P Global Ratings) May 16, 2018--S&P Global Ratings said today that its ratings and outlook on Compagnie de Saint-Gobain (###/Stable/A-2) are unchanged following Saint-Gobain's announcement that it had reached an agreement with Sika AG (A-/Stable/A-2) and the Burkhard family to end the long-running legal dispute over Saint-Gobain's planned acquisition of Sika AG. In December 2014, Saint-Gobain agreed to buy the Schenker-Winkler Holding (SWH) company from the Burkhard family for about Swiss franc (CHF) 2.8 billion. If the deal were completed, this would have given Saint-Gobain about 17% of Sika's capital and 53% voting rights. The transaction was opposed by Sika's management and had been subject to a legal dispute for about 3.5 years. Under the agreement just reached, Saint-Gobain has acquired SWH for CHF3.22 billion (2.7 billion), or about CHF500 million more than the adjusted amount initially agreed in December 2014. This higher figure takes into account the rise in Sika's share...

Bulletin