S&P has noted that it views the transaction as positive from a business risk perspective specifically commenting upon the positive synergies between the construction and concession businesses. S&P states that in its view the combined group would achieve synergies from the presence of both business segments and the ability to transfer newly built infrastructure concession assets into operation.
According to S&P the combined group would be one of the largest groups among the transportation infrastructure, engineering and construction sectors and would have a strong competitive position versus its peers.
In its report S&P also notes the increased geographical diversification which would open up HOCHTIEF's attractive infrastructure markets in the U.S., Canada and Australia to Abertis. These components, which will drive a high share of stable profitability and cash flow generation, lead S&P to conclude that it will improve its business risk profile scoring from 'satisfactory' to 'strong'. The rating has been placed on negative outlook which is standard in such M&A transactions.