(CercleFinance.com) – Oddo maintains its ‘outperformance’ rating on Assa Abloy shares, with an unchanged price target of 262 SEK.
The analyst reports that on Friday evening, Assa Abloy formally filed its response to the US Department of Justice’s (DOJ) complaint to block Assa Abloy’s acquisition of HHI.
In order to fully resolve the alleged competition concerns, the company says it has initiated the process to divest Emtek (high-end mechanical door opener) and the Smart Residential business in the United States and Canada (Yale and August).
These two combined activities represent approximately $350 million in turnover and could be valued between $1 and $2 billion according to the press, reports Oddo.
The broker affirms that the DOJ had not taken into account the will of Assa Abloy to yield its activities.
‘With this decision to sell the 3 brands (Emtek, Yale and August), Assa Abloy significantly increases, in our opinion, its chances of winning its lawsuit and acquiring HHI. A closing of the operation is not envisaged before Q2 2023’, concludes the analyst.
Copyright (c) 2022 CercleFinance.com. All rights reserved.
The information and analyzes disseminated by Cercle Finance only constitute a decision-making aid for investors. The responsibility of Cercle Finance cannot be held directly or indirectly following the use of information and analyzes by readers. It is recommended that any uninformed person consult a professional adviser before any investment. This indicative information does not in any way constitute an incitement to sell or a solicitation to buy.