On Aug. 1, 2008, Standard&Poor's Ratings Services placed its 'A/A-1' long- and short-term corporate credit ratings on Spain-based utility Gas Natural SDG, S.A. on CreditWatch with negative implications. The CreditWatch placement reflects the negative credit impact of Gas Natural's €7.6 billion purchase agreement to buy a 45.3% stake in Spanish utility Union Fenosa S.A., owned by Spain-based construction company Actividades de Construcción y Servicios, S.A. (ACS), and the following mandatory buyout of minorities for a further up to €9.2 billion. The full takeover will be paid in cash and could reach €16.8 billion. The acquisition is subject to approval by the National Energy Commission and the competition authorities. If successful, it would result in a material weakening of
