Henkel's rating changes on back of ICI takeover

13 August 2007 17:06  [Source: ICIS news]

LONDON (ICIS news)--Henkel's long-term outlook rating has changed from positive to stable due to its agreement to buy ICI’s adhesives and electrical chemical sectors once Akzo Nobel’s takeover is finalised, Fitch Ratings said on Monday.

Fitch said the outlook for the long-term IDR (issuer default ratings) had been changed from positive to stable but the short term issuer defaults rating remained unchanged at F2.

“The acquisition of ICI’s complementary businesses enables Henkel to further strengthen its own Adhesives Technologies business division,” said Britta Holt, a director of Fitch’s European Retail, Leisure and Consumer Products team.

“It will enable Henkel to increase its product offer and enjoy greater economies of scale in terms of marketing, production and distribution,” she said.

The German adhesives maker has signed a back-to-back agreement with Akzo Nobel to acquire the adhesives and electronic materials businesses of National Starch and Chemical Company. ICI has recommended Akzo Nobel’s offer.

By: Lucy Craymer
+44 20 8652 3214

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