On June 13, 2005, Standard&Poor's Ratings Services placed all its ratings on Germany-based HeidelbergCement AG and related entities, including its 'BB+' long-term corporate credit rating, on CreditWatch with negative implications following the announcement by Spohn Cement GmbH that it will submit a takeover bid to HeidelbergCement's shareholders. The 'B' short-term rating was affirmed. HeidelbergCement had unadjusted net financial debt of €3.7 billion at year-end 2004. The CreditWatch placement reflects Standard&Poor's concerns that the combined group's financial profile might not be adequate for the 'BB+' rating following a successful acquisition by unrated Spohn, a company belonging to the Merckle family. In particular, there are uncertainties regarding Spohn's financial structure, creditworthiness, and linkage to the whole Merckle group.
