0905 GMT - Denso's proposed acquisition of Rohm, estimated to cost around 1.3 trillion yen, would significantly reduce its financial capacity, S&P Global Ratings analysts say in a statement. A deal would substantially increase Denso's investment over the next two years, weakening its key financial ratios. The analysts estimate that acquiring all of Rohm's shares would amount to 1.4x-1.5x Denso's projected Ebitda over the next one to two years. They add that S&P Global Ratings might consider lowering Denso's credit rating if the likelihood of sustained free cash flow losses rises due to further acquisitions. The deal would also make Denso's performance more volatile, they add. However, if the deal goes through, it might enhance the operating stability of Denso's auto parts business. (jason.chau@wsj.com)

(END) Dow Jones Newswires

March 09, 2026 05:05 ET (09:05 GMT)

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