Japanese consultant warned Ā£268m planned takeover could place it under a āheavy financial burdenā
Japanese consultant Nippon Koei has been warned its Ā£268m bid to takeover Hyder could place it under a āheavy financial burdenā, according to one of Japanās 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.
Hyderās board agreed to Nippon Koeiās offer of 680p a share to acquire the firm, trumping Arcadisā earlier bid of 650p a share.
Rating and Investment Information said: āIf the deal goes through, both the balance between Nippon Koeiās domestic and international business, as well as its focus, will be greatly affected.
āAs a result, this acquisition will have a significant impact on its business risk profile.ā
Nippon Koei generated revenues of Ā£421.4m last year, making it significantly smaller than Ā£2bn-turnover Arcadis.
Arcadis said its takeover of Hyder would result in annual cost savings of Ā£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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