In June 2017, Italy-based infra holding company, Atlantia SpA, formally launched a €16.3 billion voluntary tender offer for all outstanding shares of Spain-based Abertis Infraestructuras S.A – a leader in toll road management.
If approved, the deal will represent the largest foreign acquisition by an Italian company since 2007 and would create the world’s largest transport infrastructure group.
In light of the takeover proposal, S&P Global Ratings published a report that analyses the transaction’s potential consequences from a credit perspective. It claims the deal would diversify Atlantia’s business by reducing its exposure to Italy, making the group more flexible and better able to withstand country-specific shocks.
Despite this, S&P questions the combined group’s financial flexibility should the transaction be approved. This could force Atlantia to divest its noncore assets – and this could lead S&P to downgrade Atlantia by one notch.