SingPost announced on Nov 1 the acquisition of BEX Group for a maximum consideration of A$210 million ($185.19 million). The company expects to complete the acquisition by end-November.
Singapore Post’s (SingPost) proposed acquisition of BEX Group will delay its deleveraging, heightening integration and execution risk during a phase of business transformation, say S&P Global Ratings’ analysts.
The transaction adds incremental ratings pressure on the Singapore-headquartered postal and logistics service provider, says S&P in an unrated report from Nov 3, “given our negative outlook on the 'BBB' long-term issuer credit rating as SingPost navigates a structural decline in the postal services business”.
