Denso's Proposed Acquisition of Rohm Could Pressure Finances -- Market Talk

Dow Jones

Mar 09

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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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&amp;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) \n</p>\n<pre style=\"white-space: pre\">\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  March 09, 2026 05:05 ET (09:05 GMT)\n</p>\n<p>\n  Copyright (c) 2026 Dow Jones &amp; Company, Inc.\n</p>\n</font>","source":null,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Denso's Proposed Acquisition of Rohm Could Pressure Finances -- Market Talk</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nDenso's Proposed Acquisition of Rohm Could Pressure Finances -- Market Talk\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2026-03-09 17:05</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<font class=\"NormalMinus1\" face=\"Arial\">\n<p>\n     0905 GMT - Denso's proposed acquisition of Rohm, estimated to cost around 1.3 trillion yen, would significantly reduce its financial capacity, S&amp;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&amp;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) \n</p>\n<pre style=\"white-space: pre\">\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  March 09, 2026 05:05 ET (09:05 GMT)\n</p>\n<p>\n  Copyright (c) 2026 Dow Jones &amp; Company, Inc.\n</p>\n</font>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"DNZOY","symbol_name":"Denso Corp.","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2618649721","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2618649721","pubTimestamp":1773047100,"columns":[],"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"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. ","collect":0,"end_time":0,"defaultTopTitle":"","property":[],"viewcount":null,"language":"en","relate_stocks":{"DNZOY":"Denso Corp.","BK4124":"机动车零配件与设备"},"translate_title":"电装拟收购罗姆可能会给财务带来压力——市场传言","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"DNZOY":0.9},"content_text":"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) \n\n\n \n\n\n  (END) Dow Jones Newswires\n\n\n  March 09, 2026 05:05 ET (09:05 GMT)\n\n\n  Copyright (c) 2026 Dow Jones & Company, Inc.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"corporation","news_rank":0,"isVideo":false,"video":null,"symbols":[],"gpt_button":0,"need_auth":true,"need_login_tip":false,"code":"91000000","status":"200"}}}