Moody's may cut Rexel

Moody's Investors Service said it placed the corporate family rating of Rexel SA on review for downgrade following the announcement that it plans to make a €3 billion cash offer to acquire all of the outstanding common shares of Hagemeyer.

The acquisition could result in weaker credit metrics as it will be fully funded by debt, according to Moody's. Rexel has secured financing for the proposed offer, the agency said.

The acquisition also will increase Rexel's scale and market position and Moody's said it acknowledges the strategic attraction.

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