Bulletin: Ratings On Japan's Mitsubishi Electric Unaffected By Announced Acquisition Of Italy-Based DeLclima

TOKYO (Standard&Poor's) Aug. 26, 2015--Standard&Poor's Ratings Services today said that its ratings on Japan-based diversified electronics company Mitsubishi Electric Corp. (A/Positive/A-1) would be unaffected by the company's announcement on Tuesday that it would acquire Italian manufacturer of commercial-use air conditioners DeLclima S.p.A. from industry machinery maker De'Longhi Industrial S.A. Mitsubishi Electric entered into an agreement with De'Longhi Industrial to purchase about 75% of DeLclima's outstanding shares, and it plans to buy the remaining shares via a public tender offer when it completes the first purchase. Even if the acquisition proceeds as announced, we expect cash flow leverage ratios for Mitsubishi Electric to remain within our assumptions. Accordingly, we believe the acquisition would have no impact on

...TOKYO (Standard & Poor's) Aug. 26, 2015--Standard & Poor's Ratings Services today said that its ratings on Japan-based diversified electronics company Mitsubishi Electric Corp. (A/Positive/A-1) would be unaffected by the company's announcement on Tuesday that it would acquire Italian manufacturer of commercial-use air conditioners DeLclima S.p.A. from industry machinery maker De'Longhi Industrial S.A. Mitsubishi Electric entered into an agreement with De'Longhi Industrial to purchase about 75% of DeLclima's outstanding shares, and it plans to buy the remaining shares via a public tender offer when it completes the first purchase. Even if the acquisition proceeds as announced, we expect cash flow leverage ratios for Mitsubishi Electric to remain within our assumptions. Accordingly, we believe the acquisition would have no impact on our long- and short-term corporate credit ratings on Mitsubishi Electric. Mitsubishi Electric estimates the total price of the share purchase and public tender...

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