Britain's Intertek weighs EQT's sweetened $12 billion buyout bid
Intertek Reviews Revised Takeover Bid from EQT
By Yamini Kalia and Simone Lobo
Background and Recent Developments
May 5 (Reuters) - Britain's Intertek said on Tuesday it was reviewing a revised takeover bid from Swedish private equity group EQT AB, valuing it at 8.93 billion pounds ($12 billion), weeks after the product testing firm rebuffed previous offers.
Market Reaction
London-listed Intertek's shares jumped to their highest since March 2025 on the news, rising as much as 9.6% to 52.64 pounds. However, this was below the new 58-pound-per-share cash offer submitted by EQT.
Bid History
It is EQT's third bid in three weeks after Intertek rejected an initial 51.50-pound-per-share proposal and a sweetened 54-pound-per-share bid on grounds they undervalued the company and its prospects.
The stock has surged more than 20% since EQT first disclosed its interest in the company in mid-April.
Analyst and Company Perspectives
Analyst Commentary
"EQT clearly wants to own this asset and seems to recognise the structural growth and the financial attractions of the business, which the market sadly did not," Panmure Liberum analyst Joe Brent told Reuters.
Company Strategy
Business Split Plans
Intertek, which helps companies ensure their products, operations and supply chains meet quality, safety and sustainability standards, is exploring plans to split its two businesses to drive growth and boost shareholder returns.
Plans of a split came a day after EQT made its first approach.
"The share price seems to suggest that a break (up of Intertek) is still very likely, which we do not agree with," Brent said.
Details of the Offer and Industry Context
Offer Details
EQT said the improved proposal would deliver accelerated cash value for Intertek shareholders, superior to possible outcomes associated with Intertek's standalone prospects.
The Swedish firm has until May 14 to make a formal offer or walk away under UK takeover rules.
Takeover Activity in the FTSE 100
Intertek is among a handful of FTSE 100 companies that have attracted takeover interest this year, including DCC, Schroders and Beazley .
Exchange Rate
($1 = 0.7393 pounds)
(Reporting by Yamini Kalia, Prerna Bedi and Simone Lobo in Bengaluru; Editing by Subhranshu Sahu and Emelia Sithole-Matarise)
