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CREDIT UPDATE: Bureau Veritas (BVIFP: A3): SGS Merger talked

CREDIT UPDATE

Credit neutral. Bureau Veritas confirms in a very short press release that the two companies are discussing a combination. Unlikely to require any funding.

  • SGS is rated A3 neg vs BVIFP A3 Stable
  • SGS has similar revenue €7.2bn vs €6.2bn
  • SGS has higher EBITDA margin at 22% vs 20%
  • BVIFP leverage would go from 1.2x to 1.6x pro forma but would benefit from scale

SGSNVX 0.125 27 trades z+62 vs z+42 BVIFP 1.125 27.

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Credit neutral. Bureau Veritas confirms in a very short press release that the two companies are discussing a combination. Unlikely to require any funding.

  • SGS is rated A3 neg vs BVIFP A3 Stable
  • SGS has similar revenue €7.2bn vs €6.2bn
  • SGS has higher EBITDA margin at 22% vs 20%
  • BVIFP leverage would go from 1.2x to 1.6x pro forma but would benefit from scale

SGSNVX 0.125 27 trades z+62 vs z+42 BVIFP 1.125 27.

Press Release