Sime Darby's proposed acquisition unlikely to impact ratings: Moody's

Moody's is upbeat about Sime Darby's acqusition of NBPOL. It says the addition of NBPOL's plantations will increase the scale and geographic diversity of Sime Darby's sizable plantation segment and widens its competitive advantage.

SINGAPORE: Moody's Investors Service says Sime Darby Bhd's proposed purchase of New Britain Palm Oil Limited (NBPOL) is unlikely to affect its A3 rating and stable outlook.

"The addition of NBPOL's plantations will increase the scale and geographic diversity of Sime Darby's sizeable plantation segment, widening its competitive advantage in the upstream plantations segment against the rest of the industry," says Dylan Yeo, a Moody's associate analyst.