Published by Global Banking & Finance Review®
Posted on January 27, 2025
2 min readLast updated: January 27, 2026
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SGS has ceased $30 billion merger talks with Bureau Veritas due to unresolved issues, including Swiss-EU stock market complications.
ZURICH (Reuters) -Swiss testing and inspection group SGS has ended talks over a potential $30 billion merger with French rival Bureau Veritas after the two sides failed to reach agreement over the deal, it said on Monday.
"SGS and Bureau Veritas have been exploring a potential combination. The discussions have not resulted in an agreement and have ended," SGS said in a brief statement.
A spokesperson for the company said it had nothing to add at present about the reasons for its decision.
A source familiar with the matter said minor contractual issues and execution risks had helped scupper talks between the groups, which test and certify new products, ingredients and processes.
SGS said earlier this month it was in discussions to combine with Bureau Veritas in what could have been an all-stock transaction, according to a person familiar with the matter.
That would have meant SGS shares would trade in Paris, a fact that could have led to complications due to tit-for-tat measures imposed years ago during a Swiss-EU stock market row.
Such listings of Swiss shares in the EU are forbidden by protective measures Switzerland issued in 2019 when the bloc withdrew its recognition of equivalence for the Swiss exchange amid a dispute over bilateral trade talks.
Without commenting specifically on the SGS-Bureau Veritas deal, Swiss financial authorities acknowledged that the situation presented potential problems for the tie-up.
Authorities appeared to have noted the potential headache and were taking steps to withdraw the protective measures.
The source said they did not believe the stock market issue had been a significant factor in the merger talks ending.
(Reporting by Paolo Laudani, Dave Graham and Oliver Hirt; Editing by Friederike Heine and Jan Harvey)
SGS and Bureau Veritas ended their merger discussions due to minor contractual issues and execution risks that prevented an agreement.
The potential merger was being discussed as an all-stock transaction, which would have involved SGS shares trading in Paris.
The potential listing of Swiss shares in the EU was complicated by protective measures imposed by Switzerland in 2019 during a stock market dispute with the EU.
Yes, Swiss financial authorities acknowledged that the situation could present problems for the merger, although they did not specifically comment on the SGS-Bureau Veritas deal.
Authorities appeared to be taking steps to withdraw the protective measures that could complicate the merger.
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