Japanese consultant warned 拢268m planned takeover could place it under a 鈥渉eavy financial burden鈥�
Japanese consultant Nippon Koei has been warned its 拢268m bid to takeover Hyder could place it under a 鈥渉eavy financial burden鈥�, according to one of Japan鈥檚 biggest credit rating agencies.
Rating and Investment Information has put Nippon Koei at risk of a potential downgrade after it muscled out a rival takeover bid by Dutch engineer Arcadis to acquire Hyder, according to the Times.
Hyder鈥檚 board agreed to Nippon Koei鈥檚 offer of 680p a share to acquire the firm, trumping Arcadis鈥� earlier bid of 650p a share.
Rating and Investment Information said: 鈥淚f the deal goes through, both the balance between Nippon Koei鈥檚 domestic and international business, as well as its focus, will be greatly affected.
鈥淎s a result, this acquisition will have a significant impact on its business risk profile.鈥�
Nippon Koei generated revenues of 拢421.4m last year, making it significantly smaller than 拢2bn-turnover Arcadis.
Arcadis said its takeover of Hyder would result in annual cost savings of 拢15m, with some overhead and job cuts, whereas Nippon Koei has pledged to run Hyder as a standalone division with no job cuts or office closures.
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