Brazil's WEG up after deal to buy Regal Rexnord businesses

Regal Rexnord

25/09/2023 14:31

** Shares in Brazilian motormaker WEG  WEGE3.SA  rise after it
struck a deal to buy Regal Rexnord's  RRX.N  motors and
generators businesses 
    ** The companies announced the $400 million agreement
earlier on Monday
    ** Analysts at JPMorgan say that in the short term the deal
will have a negative impact of around 0.8pp on WEG's EBITDA
margin, but an aggregated positive impact of around 3-4%
    ** "We expect a positive reaction to this announcement,
showing WEG's capacity to continue to grow, although
inorganically, and in light of potential synergies," they say
    ** WEG shares are up roughly 3% in morning trading, making
it the biggest gainer on Brazil's Bovespa stock index  .BVSP ,
which slips 0.3%
    ** Year-to-date, WEG falls some 6.7%

 (Reporting by Gabriel Araujo)
 ((Gabriel.Araujo2@thomsonreuters.com; +55 11 5047-3352;))